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The Riverside history of 
the United States 



William Edward Dodd. 




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THE RIVERSIDE HISTORY 

OP THE 

UNITED STATES 



WILLIAM E. DODO, EDlTOB 



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THE RIVERSIDE HISTORY 
OF THE UNITED STATES 

WILLIAM E. DODD, EDITOR 



I. BEGINNINGS OF THE AMERICAN PEO- 
PUS. By Carl Lotub Bbckxb, PRtfeasor of European 
Hutoiy, Univeraity of Kiviwiw, 

H. I7NION AND DEMOCRACY. By Alubn Johm- 
80H, ProfeBBor of American History, Yale University. 

in. EXPANSION AND CONFLICT. By Wiluam 
E. DoDD, ProfeBBor of American EQstocyt University of 
Chicago. 

IT. THE NEW NATION. By Fbbdksic L. Paxson. 
PrcrfesBor of Histoiy, University of Wisconsin. 



HOUGHTON MIFFLIN COMPANY 
BOSTON NEW YORK CHICAGO 



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Copyright, 1912, Muffett, Chicago 




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THE NEW NATION 



BY 

FREDERIC L. PAXSON 

FB0FE8S0B OF HISTOBT 
UNIYSBSITY OF WISCONSIN 



HOUGHTON MIFFLIN COMPANY 

BOSTON NEW YORK CHICAGO 



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COPYRIGHT, I915, BY FRBDKRXC L. PAXSON 
ALL RIGHTS RSSERVBD 



W» ]Blfiien«be 9reM 

CAMBRIDGE . MASSACHUSETTS 
U . S . A 



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PREFACE 

A NEW nation has appeared within the United 
States since the Civil War, but it has been only ac- 
cidentally connected with that catastrophe. The Con- 
stitution emerged from the confusion of strife and 
reconstruction substantially unchanged, but the eco- 
nomic development of the United States in the sixties 
and seventies gave birth to a society that was, by 
1885, already national in its activities and necessi- 
ties. In many ways the history of the United States 
since the Civil War has to do with the struggle be- 
tween this national fact and the old legal system that 
was based upon state autonomy and federalism ; and 
the future depends upon the discovery of a means to 
readjust the mechanics of government, as well as 
its content, to the needs of life. This book attempts 
to narrate the facts of the last half-century and to 
show them in their relations to the larger truths of 
national development. 

Fredebic L. Paxson. 



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CONTENTS 

I. The Civil Wab 1 

n. The West and the Greenbacks • 20 

m. The Restobation of Home Rule in the 

SOITTH 89 

IV. The Panic op 1873 59 

V. The Hates Administbation .... 75 

VI. Business and Politics ^ 

Vn. The New Issues 108 

Vm. Gboveb Cleveland 126 

IX. The Last of the Fbontieb • . .142 

X. National Bxtsiness 162 

XI. The Fabmebs' Cause 177 

Xn. The New South 192 

Xm. Populism 208 

XIV. Fbeb Silvbb 225 

XV. The "Countbb-Rbfobmation*' . . . 244 

XVI. The Spanish Wab 258 

XVn. Theodobe Roosevelt 276 

XVm. Big Business 293 

XIX. The "Muck-Rakehs" 309 

XX. New Nationalism 324 

Index i 



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MAPS AND CHARTS 

The Railways of the "Old Nobthwest" . . 13 
The Western Railway Land Grants, 1850-1871 23 

The Solid South, 1880-1912 53 

The Political Situation at Washington, 1860- 

1017 76,77 

Population and Immigration, 1850-1010 . . . 120 
The Western Railroads and the Continental 

Frontier, 1870-1890 146, 147 

The Distribution op the Public Domain, 1789- 

1904 153 

The Congressional Election of 1890 

between 186 and 187 
The Flood of Silver, 1861-1911 . . . .227 
Alaska, the Philippines, and the Seat of the 

Spanish War . 259 

North America in 1915 . . . between 340 and 341 



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THE NEW NATION 



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THE NEW NATION 

CHAPTER I 

THE CIVIL WAB 

The military snooesses of the United States in 
its Civil War maintained the Union, but entailed 
readjustments in politics, finance, and business that 
shifted the direction of public affairs for many years. 
In the eyes of contemporaries these changes were 
obscured by the vivid scenes of the battlefield, whose 
intense impressions were not forgotten for a gen- 
eration. It seemed as though the war were every- 
thing, as though the BepubUcan party had preserved 
the nation, as though the nation itself had arisen 
with new plumage from the stress and struggle of 
its crisis. The realities of history, however, which 
are ever different from the facts seen by the partici- 
pant, are in this period further from the tradition of 
the survivor than in any other stage of the develop- 
ment of the United States. As the Civil War is 
viewed from the years that followed it, the actu- 
alities that must be faced are the facts that the 
dominant party saved neither the nation nor itself 
except by changing its identity ; that economic and 
industrial progress continued through the war with 
unabated speed, and that out of the needs of a new 
economic life arose the new nation. 



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2 THE NEW NATION 

The Bepublican party, whose older spokesmen had 
been trained as Whigs or Democrats, had by 1861 
seasoned its younger leaders in two national cam* 
paigns. It had lost the first flush of the new enthu- 
siasm which gave it birth as a party opposed to the 
extension of slavery. The signs of the times had 
been so clear between 1856 and 1860 that many 
politicians had turned their coats less from a moral 
principle than from a desire to win. When Lincoln 
took up the organization of his Administration, these 
clamored for their rewards. There was nothing in the 
political ethics of the sixties that discountenanced 
the use of the spoils of office, and Lincoln himself, 
though he resented the drain of office-seeking upon 
his time, appears not to have seen that the spoils 
system was at variance with the fundamentals of 
good government. 

It was a Bepublican partisan administration that 
bore the first brunt of the Civil War, but the strug- 
gle was still young when Lincoln realized that the 
Union could not stand on the legs of any single 
party. To develop a general Union sentiment be- 
came an early aim of his policy and is a key to his 
period. He was forced to consider and reconcile the 
claims of all shades of Bepublican opinion, from 
that of the most violent abolitionist to that of the 
mere unionist. In the Democracy, opinion ranged 
from that of the strong war Democrat to that of the 
Copperhead whose real sympathies were with the 
Confederacy. 

To conciliate a working majority of the voters of 
the Union States, a majority which must embrace 



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THE CIVIL WAR 8 

many Union Democrats, Lincoln steadily loosened 
the partisan bonds. The congressional elections of 
1862 showed that he was still far from success. His 
overtures to the Democrats of the border States fell 
into line with his general scheme. His tolerance of 
McClellan and his support of Stanton, both of whom 
by sympathy and training were Democrats, reveal 
the comprehensive power of his endurance. As the 
election of 1864 approached to test the success of 
his generalship, he had to fight not only for a ma- 
jority in the general canvass but for the nomination 
by his own party. 

There were many men in 1864 who believed that 
the war was a mistake and that Lincoln was a 
failure. The peace Democrats denounced him as a 
military dictator ; to the radical Bepublicans he was 
spineless and irresolute. Within his own Cabinet 
there was dissension that would have unnerved a less 
steady man. Chase, the Secretary of the Treasury, 
wanted to be President, and had allowed his friends 
to intrigue in his behalf, yet had not withdrawn 
from the counsels of his rival. At various times he 
had threatened to resign, but Lincoln had shut his 
eyes to this infidelity and had coaxed him back. 
Not until after the President had been renominated 
did he accept the resignation of Chase, and even 
then he was willing to make the latter Chief Justice 
of the Supreme Court. 

Chase, in the Cabinet and in touch with dissatis- 
fied Republicans outside, was a menace to impartial 
administration. Less distressing, but noisier than he, 
was John C. Fremont, the first nominee of the 



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4 THE NEW NATION 

party, who had sulked in the midst of admiring 
friends since Lincoki had removed him from im- 
portant military service in 1861. About him the ex- 
treme abolitionists were gathered, and in his favor 
there was held a convention in May, 1864. But this 
dissenting movement collapsed upon itself before 
the elections in November. 

The Bepublicans went into convention at Balti- 
more, on June 7, 1864. The candidacy of Chase 
had faded, that of Fremont veas already tmimpor- 
tant, and the renomination of Lincoln was assured. 
But the party carefully concealed its name and, cater- 
ing to loyalists of whatever brand, it called itself 
*' Union," and invited to its support all men to 
whom the successful prosecution of the war was the 
first great duty. It was a Union party in fact as 
well as name. Delegations of Democrats came to it 
from the border States, and from one of these the 
convention picked a loyal Democrat for the Vice- 
Presidency. With Lincoln and Ajadrew Johnson on 
its ticket, vtdth a platform silent upon the protective 
tariff, and with an organization so imperfect that no 
roll of delegates could be made until the convention 
had been called to order, the Administration party 
of 1864 was far from being the same organization that 
had, in 1866, voiced its protest against the Kansas- 
Nebraska Bill. 

The excesses of the Democrats aided Lincoln al- 
most as much as the efforts of the party which nom- 
inated him. A convention at Chicago, in August, 
presided over by Governor Seymour, of New York, 
and under the dominance of Clement L. Vallandig- 



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THE CIVIL WAR 5 

ham, did not need to denounce the war as a failure 
in order to disappoint the Union Democrats. Not 
even the nomination of McQellan, nor his repudia- 
tion of the platform, could undo the result of such 
leadership. It was far from certain which ticket 
would receive the greater vote in November, but it 
was clear that union against disunion was the issue, 
and that men would vote according to their hopes and 
fears. The former were in the ascendant when the 
polls were opened, for Sherman had gained a decisive 
victory in his occupation of Atlanta, while Farragut 
had gained another at Mobile Bay. On the strength 
of these successes the Union ticket carried every 
State but Delaware, Kentucky, and New Jersey. 

Chase, who left the Treasury during the presi- 
dential campaign, had by that time finished the 
work which carried the financial burdens of the 
Civil War and provided party texts for another 
generation. He had come to his task without special 
fitness, but had speedily mastered the essentials of 
war finance. In his reports he outlined the policy 
which Congress followed, more or less closely. Taxes 
ought to be increased, he urged, to meet all the 
costs of civil administration, interest on the debt, and 
sinking fund for the same. These were current 
burdens which the country ought not to try to 
escape. But the extra cost of the war, which was 
to be regarded as a permanent investment by the 
Union for its own defense, might fairly be made a 
charge upon posterity. To meet these he urged the 
creation of a sufficient bonded debt. 

The Thirtynseventh Congress (1861-63) had been 



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6 THE NEW NATION 

more ready to borrow than to tax. In all its expe- 
rience until 1861 the United States had met no 
crisis in which large revenues had been required. In 
the thirty preceding years its total annual receipts 
had ranged from 120,000,000 to $81,000,000, while 
in the fiscal year in which the war began the total 
had reached 183,000,000, of which 141,000,000 
were loans rather than revenue. Since the panic of 
1857 the Treasury had faced a deficit at the end of 
each year, and had been compelled not only to spend 
its accumulated surplus on current needs, but to 
borrow heavily. The tarifiF duties, collected at the 
custom-houses, were, as they always had been, the 
mainstay of the revenue. But these had not met 
the needs of the three lean years before the war. 

Had there been no war, the disordered finances of 
the United States might, in 1861, have called for 
corrective measures and new taxes, and these could 
not have become effective before 1862 or 1868. As 
it was, loans were resorted to for first-aid. In 1862 
they alone were more than six times as great as the 
total receipts of 1861 ; in 1865 they were nearly 
three times as great as in 1862. Taxes were author- 
ized more reluctantly than loans, they became pro- 
fitable more slowly, and did not, until the last year 
of war, reveal the fiscal capacities of the United 
States. 

The favorite national tax of the United States had 
always been the tariff. Supplemented by miscella- 
neous items which included no internal revenue after 
1849, and no direct tax after 1839, it carried most 
of the financial burdens. Whether parties preferred 



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THE CIVIL WAR 7 

it liigh or low, or levied it for protection or for rev- 
enue, they had continued to cherish it as a fiscal 
device, and had acquired no experience with alter- 
nate sources of supply. Like the army of the United 
States, which in time of war had to break in its vol- 
unteer levies before it could win victories, the Treas- 
ury and Congress had to learn how to tax before 
they could bring the taxable resources of the United 
States to supplement the loans. 

The tarifiE was revised and increased several times 
between 1861 and 1865, and yielded its greatest 
return, $102,000,000, in 1864. The result was due 
to both the swelling volume of imports and the 
higher rates. Like all panics, that of 1857 had less- 
ened the buying capacity of the American people. 
In hard times luxuries were sacrificed and treasury 
receipts were thereby greatly curtailed. A return to 
normal conditions of business would have been visi- 
ble by 1861 had not war obscured it. Steadily 
through the war a prosperous North and West bought 
more foreign goods regardless of the price. 

The rate of tarifE was based upon the probable 
revenue, the protective principle, and the tax bur- 
dens already imposed upon American manufacturers. 
Not until 1868 were the internal or direct taxes 
noticeable, but in 1864 these passed the tariff as a 
source of revenue, with a total of 1116,000,000. In 
1866 this total was swollen to $211,000,000. Like 
the tariff, the income, excise, and direct taxes were 
often revised and raised, and many of the tariff in- 
creases were dependent upon them. When the 
American manufacturer, who already declared that 



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8 THE NEW NATION 

he could stay in business only because the tariff pro- 
tected him from European competition, found himself 
burdened with a tax on his income and with others 
upon his commercial transactions and his output, he 
complained bitterly of the disadvantage at which he 
was placed. To equalize his burdens, the import 
rates were repeatedly raised against the foreigner. 
By the end of the war, the tariff exceeded anything 
known in American experience, and was fixed less 
with the intention of raising revenue than of ena- 
bling the American producer to pay his internal tax. 
Less than $85,000,000 were collected from the cus- 
toms in 1865 ; while 1211,000,000 came from inter- 
nal sources. 

By taxing and borrowing the United States accu- 
mulated $88,000,000 in 1861, $589,000,000 in 
1862, $888,000,000 in 1863, $1,408,000,000 in 

1864, and $1,826,000,000 in 1865. The Treasury, 
unimportant in the world's affairs before 1861, sud- 
denly became one of the greatest dealers in credit. 
Its debt of $2,808,000,000, outstanding in October, 

1865, affected the interests and solidity of interna- 
tional finance, and indicated, as well, resources of 
which even boastful Americans had been unaware in 
1861. One item in the debt, however, was a menace 
to the security of the whole, which was but little 
stronger than its weakest part. 

The physical currency in which the debt was to 
be created and the expenses paid was as difficult to 
find in 1861 as the wealth which it measured. After 
Jackson destroyed the second Bank of the United 
States there had been no national currency but coin, 



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THE CIVIL WAR 9 

and too Utile of that. Gold and silver had been 
coined at the mint, and the former had given the 
standard to the dollar. In intrinsic worth the gold 
dollar, as defined in 1834 at the ratio of sixteen to 
one, was sUghtly inferior to its silver associate, and 
by the law of human nature, which induces men to 
hold the better and pass the cheaper money, the 
value of the gold coin had become the measure of 
exchange. 

The coined money did not circulate generally. It 
was devoted to a part of the business of government, 
and to the needs of the banks which provided the 
actual circulating medium. Scattered over all the 
States, hundreds of state and private banks issued 
their own notes to serve as money. At best, and in 
theory, these were exchangeable for gold at par ; at 
worst, they were a total loss ; yet as they were, vari- 
ant and depreciated since the panic of 1857, they 
were the money of the people when the Civil War 
began. Before the end of 1861 the banks gave up 
the pretense of redeeming their notes in coin. The 
United States Treasury suspended the payment of 
specie early in 1862, and thereafter for seventeen 
years the paper money in circulation depended for 
its value on the hope that it would some day be re- 
deemed. 

The needs of the Treasury, in the crisis of suspen- 
sion, induced Congress to authorize the emission of 
$460,000,000 of legal-tender paper money. These 
notes, soon known as the '^ greenbacks," became the 
measure of the difference between standard money 
and coin. Issued at par, they sank in value and 



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10 THE NEW NATION 

fluctuated until in the darkest days of 1864 a dollar 
in gold could be exchanged for $2.85 in greenbacks. 
Yet they were called dollars, and the creditor was 
forced to accept them in payment of his debts. They 
were themselves a forced loan, borrowed by compul- 
sion from the people, and constituting $438,000,000 
in the total debts of the United States in 1865. 

The greenback element in the national debt 
threatened the integrity of the whole. Should re- 
demption take place at par, and at once, the credit 
of the United States could not fail to be strength- 
ened. But should the greenbacks be allowed to re- 
main below par, should more of them be issued, or 
should the United States avail itself of its technical 
privilege to pay off part of the bonded debt in " law- 
ful money " manufactured by the printing-press, the 
weakest item in the total might easily depress the 
whole. 

The future of American politics after 1865 was 
largely determined by the methods through which 
the revenue had been increased and by the fate of 
the greenbacks, but more important for the immedi- 
ate future than either of these was the great fact 
that in five years the United States had been able 
to incur its net debt of $2,808,000,000, and had 
raised in addition more than $700,000,000 through 
taxation. It was a prosperous Union that emerged 
from the Civil War, and every region but the South 
was strong in its conscious wealth. 

The whole of the United States had shared in the 
unusual growth in the period following the Mexican 
War, in which the new railroads were tying the Mis- 



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THE CIVIL WAR 11 

sissippi Valley to the seaboard. The census of 1860 
reported an increase of 36 per cent in total popula- 
tion in ten years, somewhat unevenly divided, since 
the Confederate area had increased but 25 per cent, 
as compared with 39 per cent in the North and West, 
yet large enough everywhere to keep up the tradi- 
tions of a gro\nng population. The growth continued 
in the next decade, despite the Civil War. It is not 
to be expected that it should have touched the record 
of the fifties, for 2,500,000 men were drawn from 
production for at least three years — the three years 
in which most of them would have grown to man- 
hood and married, had there been no war. The South, 
desolated by war, and with nearly every able-bodied 
white man in the ranks, stood still, with under 9 per 
cent increase. But the whole country grew in popu- 
lation from 31,443,321 to 38,558,371 (22 per cent), 
while the North and West, in spite of war, grew 27 
per cent, — more than the South had done in its 
most brilliant decade. 

How far the North and West would have gone 
had they not been hampered by the depression after 
1857 cannot be stated. These regions had suffered 
most from the panic, since in them railroads and 
banks, factories and cities, and all the agents of a 
complex industrial organization had been most active. 
The industrial disturbance had disarranged for the 
time the elaborate Northern system. The simpler 
South, with its staple crops, its rural population, and 
its few railways, bad suffered less. Southerners be- 
fore the war had seen in their immunity from the 
effects of pa^ic a proof of tbeiy superiority over 



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12 THE NEW NATION 

other social orders; they had misread the times and 
prophesied the disintegration of the industrial organ- 
ization of the North. 

The South seceded before the rest of the United 
States emerged from the panic period. In the next 
four years the treasury receipts show the resources 
of the loyal States. Industry, recovered from its de- 
pression, went ahead imnoticed in the noise of war, 
yet little impeded by the fact of war. 

Communication by rail brought the most significant 
of the single changes into the Northern States. Be- 
fore the panic of 1857 the trunk-line railways had 
completed their net of tracks between the Mississippi 
and tidewater. Nearly ten thousand miles had been' 
built in the Old Northwest alone in the ten preced- 
ing years. But the effect of this on business, certain 
to come in any event, was not seen until secession 
closed the Mississippi to the agricultural exports of 
the Northwest. For a part of 1861 and 1862 traffic 
piled up along the young railroads extending from 
St. Louis and Chicago to Buffalo, Pittsburg, New 
York, and Philadelphia. But before 1863 these lines, 
notably the New York Central, the Erie, and the 
Pennsylvania, had adapted themselves to the trade 
which the South had thrust upon them ; and never 
since secession has New Orleans regained her place 
as the great outlet of the Mississippi Valley. 

The fundamental change in the direction of its 
trade added to the prosperity of the North. In the 
additions to the transportation system, made to ac- 
commodate the new business, new railroads were 
less prominent than second tracks, bridges, tunnels. 



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..^Adlroada in operadon 



Jan. 1, 1860 
II H IH H M HM H Satlroads completed 



THB BAII.WAYS OF THB "OLD NORTHWBST" 

Showing the deyelopment between 1848 and 1860, upon which the CiYil 
War prosperity of the region was based 



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14 THE NEW NATION 

and termiDol facilities. The experimental years of 
railroading had passed before most of the lines 
learned the importance of city terminals. The growth 
of the cities and the rising price of land made the 
attainment of these more difficult than they need 
have been, while city governments and their officials 
learned that illicit profits could be made out of the 
necessities of the railroads. The great lines, active 
in the development of their plants, and consolidating 
during the sixties to get the benefits of unified man- 
agement, added to the bustle in the cities in the North. 

The United States was an agricultural country 
until the beginning of manufacturing and the revolu- 
tion in communication made it profitable to concen- 
trate people and capital in the cities. Between 1850 
and 1880 the number of cities with a population of 
60,000 more than doubled. The actual construction 
of the houses, the water and lighting systems, and 
the sewers for these communities gave employment 
to labor. As cities grew, their more generous dis- 
tances brought in the street-car companies, whose 
occupation of the public streets added to the tempta- 
tions and opportunities of the officials of govern- 
ment. The swelling manufactures increased the city 
groups and gave them work. 

The country life itself began to change. The 
typical farming families, developed by pioneer con- 
ditions, had remained the social unit for several gen- 
erations, but these felt the lure of the cities which 
drew their boys and girls into the factories. Domes- 
tic manufactures could not compete in quality, ap- 
pearance, or price with the output of the new fac- 



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THE CIVIL WAR 15 

lories. The farmer began to give up his slaughtering 
and butter-making, as he had ahready abandoned his 
spinning and weaving, and devoted himself more 
exclusively to raising crops. Here, too, the mechani- 
cal improvements touched his life. Agricultural 
machinery was coming into general use, while the 
new railroads carried off his produce to the great 
markets which the rising cities created. 

The number of employees of American factories 
increased more than haLE between 1860 and 1870, 
while the capital invested and the goods turned out 
were more than doubled. The United States was for 
the first time looking to a day when all the ordinary 
necessities of life could be made within its limits. 
At Chicago, St. Louis, New York, Boston, Phila- 
delphia, and a host of cities in the interior, men 
were not disturbed by the war in their attempt to 
exploit the abundant resources of the continent. 
The manufacture of food began to shift from the 
household to the city factory, to the advantage of 
the cities lying near the great fresh areas of farm 
lands. The flour mills of the Northwest, the meat- 
packing establishments at Chicago and elsewhere, 
the distilleries of central Illinois, utilized the agri- 
cultural staples and transformed them for export. 
The presence of factories forced upon the city gov- 
ernments. East and West, already embarrassed by 
the pains of rapid growth, the problems of police 
power and good government. Charters written for 
semi-rural villages were inadequate when the vil- 
lages became cities. 

Clothing, no less than food, passed into the factory, 



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16 THE NEW NATION 

thanks to Elias Howe and his sewing-machine and 
the shoe machinery of McKay. Before the war the 
influences of this change were visible in the increas- 
ing demand for cotton. Now came the great growth 
of the textile regions of the East, around Fall River 
and Philadelphia, and of the shoe factories in the 
Lynn district. 

The use and manufacture of machines gave new 
stimulus to those regions where coal and iron, placed 
conveniently with reference to transportation, had 
fixed the location of smelters and rolling-mills. In 
the middle of the sixties Henry Bessemer's commer- 
cial process for the manufacture of steel marks the 
beginning of a revolution in the construction of rail- 
roads and bridges, as well as in public and private 
architecture. Pittsburg became the heart- of the steel 
industry, and the young men who controlled it fixed 
their hands upon the conmiercial future of the United 
States. The newest of industries, the trade in petro- 
leum and its oils, reached fifteen millions in Pittsburg 
alone in 1864. 

The trunk-line railways with their spurs and 
branches adjusted themselves early in the war to the 
new direction of business currents. They then began 
to carry the new inhabitants into the cities, the new 
manufactures to their markets, and to press upon iron, 
coal, and timber for their own supplies. Men of 
business laid the foundations of huge fortunes in 
supplying the new and growing demands. The stock 
company, with negotiable shares and bonds, made it 
possible for the small investor to share in the larger 
commercial profits and losses. 



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THE CIVIL WAR 17 

The growth and elaboration of oompanies and 
commerce were projected upon a legal system that 
was most accustomed to small enterprises and local 
trade. Not only had the corporations to establish cus- 
toms and precedents among themselves, but courts, 
legislatures, and city councils had to face the need for 
an amplification of American law. The speed with 
which the new life swept upon the country, the in- 
experience of both business men and jurists, the pub- 
lic ignorance of the extent to which the revolution 
was to go, and the cross-purposes inevitable when 
States tried to regulate the affairs of corporations 
larger than themselves, make it unnecessary to search 
further for the key to the confusing half-century that 
followed the Civil War. 

The rapid changes in manufacturing, transporta- 
tion, urban life, and business law that came with the 
prosperity of the early sixties gave to these years an 
appearance of materialism that has misled many ob- 
servers. None of the developments received full con- 
temporary notice, for war filled the front pages of the 
newspapers. The men who directed them were not 
under scrutiny, and could hardly fail to bring into 
business and speculation that main canon of war time 
that the end is everything and that it justifies the 
means. But though war was not the sole American 
occupation between 1861 and 1865, and though a 
new industrial revolution was begun, material things 
often gave way in the American mind to altruistic 
concepts and the service of the ideal. 

Congress endowed the agricultural colleges in the 
early years of the war, and the state universities, 



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18 THE NEW NATION 

though thinned by the enlistment of their boys, es- 
tablished themselves. The creation of new universi- 
ties, the endowment of older foundations, and the 
beginning of an education that should fit not only for 
law, medicine, and theology, but for business, agri- 
culture, engineering, and teaching, all bear testimony 
to the real interests of American democracy. The 
ideal was as yet far removed from the fact, and the 
intellectual leaders of the United States were yet to 
pass through a period of black pessimism, but the 
people were still firm in their faith that education is 
the mainstay of popular government, and gave their 
full devotion to both. 

The four years of the Civil War carried the United 
States over a period of social and economic transition 
and left it well started on the new course. They en- 
larged and expanded the activities of government, 
hastening that day when there should exist a public 
conviction that government is a matter of technical 
expertness and must be run in a scientific manner for 
the common good. They raised the problems of taxa- 
tion and currency to a new importance, and impressed 
their significance upon the men who directed the in- 
dustries of the country. In their prosperity they made 
it possible to save the Union ; and at their close a 
Union party, uncertain of its strength and its per- 
sonnel, faced the problems of a united country which 
included an industrial North, a desolated South, and 
a vanishing frontier. 



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THE CIVIL WAE 19 



BIBLIOGRAPHICAL NOTE 

For farther ref ereDoes npon the Ciyil War period, consult 
William E. Dodd, Expansion and Conflict (in this series), and 
F. L. Fazson, The Civil War (1911). The best and most ex- 
hanstiye narrative is J. F. Bhodes, History of the United States 
from the Compromise of 1850 to the Final Restoration of Home 
Rule at the South in 1877 (7 vols., 1892-1906), and this may be 
supplemented to advantage by E. D. Fite, Social and Indus* 
trial Conditions in the North during the Civil War (1910). There 
is a convenient account of the election of 1864, with platforms 
and tables of votes, in E. Stanwood, A History of the Presidency 
(1898) and there are many valuable documents in E. McPher* 
son's annual Political Manual. The biographies of W. H. Sew* 
ard, by F. Bancroft, and Jay Cooke, by E. F. Oberholtzer, are 
among the best of the period. There are no better summaries 
of finances than D. B. Dewey's Financial History of the United 
States (1903, etc.) ; W. C. Mitchell's History of the Greenbacks 
(1903) ; and J. A. Woodbum's Thaddeus Stevens (1913). In 
the Annual Cyclopasdia (published by D. Appleton & Co., 1861- 
1902) are useful and accurate accounts of current affairs. 
E. L. Godkin began to publish the Nation in New York in the 
summer of 1865, and H. Y. Foore issued the first volume of his 
annual Manual of the Railroads of the United States^ in 1868. 



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CHAPTER II 

THE WEST AND THE GBEENBAOKS 

The activity of the North and the East between 
1861 and 1865 was imitated and magnified among 
the youthful communities that made up the western 
border and ranged in age from a few weeks to 
thirty years. These had been mostly agricultural 
in 1857. Iowa, Minnesota, Wisconsin, and Kansas 
had been the frontier before the Civil War. In place 
of these, now grown to be populous and more or less 
sedate, a new group appeared farther west, within 
what had been believed to be the '^ American Des- 
ert." By 1868 Congress completed the subdivision 
of the last lands between the Missouri Biver and 
the Pacific, since which date only one new political 
division has appeared in the United States. 

The last frontier, that developed after 1857, was 
novel as well as new. It was made up of mining- 
camps. Everywhere in the . Socky Mountains pros- 
pectors staked out claims and introduced their free- 
and-easy life. Before 1857 the group of Mormons 
around the Great Salt Lake was the only considerable 
settlement between eastern Kansas and California. 
Now came in quick succession the rush to Pike's 
Peak and Colorado Territory (1861), the rush from 
California to the Carson Valley and Nevada Ter- 
ritory (1861), and the creation of the agricultural 



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THE WEST AND THE GREENBACKS 21 

territory of Dakota (1861) for the up-river Mis- 
souri country, where in a few more years were re- 
vealed the riches of the Black Hills. In 1863 the 
mines of the lower Colorado River gave excuse for 
Arizona Territory. Those of the northern Continen- 
tal Divide were grouped in Idaho in the same year, 
and divided in 1864 when Montana was created. 
Wyoming, the last of the subdivisions, was the prod- 
uct of mines and railroads in 1868. Oklahoma was 
not named for twenty years more, but had existed in 
its final shape since the passage of the Kansas-Ne- 
braska BiU in 1854. 

The , legitimate influence of these mining-camps 
upon the United States was great. It was no new 
thing for Congress to solve its national problems on 
the initiative of the West. Since the passage of the 
Ordinance of 1787 this had been a frequent occurs 
rence, and the history of the public lands had always 
been directed by Western demands. In 1862 the 
agricultural West, whose capacity to cultivate land 
had been magnified by the new reaper of McCor- 
mick, had obtained its Homestead Act, by which land 
titles were conveyed to the farmer who cleared the 
land and used it. Thomas H. Benton had fought for 
this through a long lifetime. He died too soon to see 
the full apotheosis of the squatter, who gradually 
developed, in point of law, from the criminal steal- 
ing the public land to the public-spirited pioneer in 
whose interest a wise Congress ought to shape its 
laws. Under the influence of this new Homestead 
Law, aided by the Preemption Law, which remained 
in force, land titles were established in the Moun- 



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22 THE NEW NATION 

tain States as rapidly as the Indians could be re- 
moved. 

The frontier mining territories were loud in de- 
manding that Congress should give them more land, 
remove the Indians, extend poUce protection, and 
give them mails and railroads. The miner disliked 
the isolation which his speculations brought upon 
him, and Congress unfolded new powers to remove 
it for him. In 1858 it organized the great overland 
mail that ran coaches to California in less than 
twenty-five days. The pony express provided faster 
service in 1860-61. And after private money had 
built the telegraph line to the Pacific, both Congress 
and the West took up the subject of a continental 
railway. 

In the summer of 1862 a group of raiboad com- 
panies was authorized to build a track from the 
Missouri Biver (which had already been reached at 
St. Joseph by a railway from the East) to Califor- 
nia. As modified by law in 1864 the contract pro- 
vided for extensive government aid in the specula- 
tion : twenty sections of land for every mile of track, 
and a loan of United States bonds at the rate of at 
least $16,000 per mile. But the West had little cap- 
ital, and the prosperous East had better investments 
at home, so that money could hardly be got into this 
scheme on any terms. The Western promoters were 
driven to shifty extremes before they overcame the 
Eastern belief that no continental railroad could 
pay. Not until 1866 was the construction work begun 
in earnest. 

Between 1866 and 1869 the building of the Union 



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THE WEST AND THE GBEENBACKS «5 

Pacific was the most picturesque enterprise in Amer- 
ica. Across the great plains, the desert, and the 
mountains, from Council Bluffs to Sacramento, it was 
pushed. In the West, Stanford and his group of 
Califomia visionaries carried the burden. The east- 
em end brought out no single great promoter. Both 
ends fought the problem of timber and stone and 
railroad iron, but most of all of labor. Stanford 
finally imported the Chinese coolie for the job. Civil 
War veterans and new immigrants did most of the 
work on the eastern end. And along the eastern 
stretches the Indian tribes of the plains watched the 
work with jealous eyes. The Pawnee, the Sioux, the 
Arapaho, and the Cheyenne saw in the new road 
the end of a tribal life based upon wild game. 

Severe Indian outbreaks accompanied the con- 
struction of the railroad, as the tribes made their 
last stand in Wyoming, Colorado, and the Indian 
Territory. Before the line was done, the tribes of the 
plains were under control in two great concentration 
camps, in South Dakota and Indian Territory, and 
the worst of the Indian fighting in the West was over. 

In the spring of 1869 the railroad was finished 
and a spectacular celebration was held near Ogden, 
in Utah Territory. The finishing stroke was every- 
where regarded as national, since not only had Con- 
gress given aid, but the union of the oceans was an 
object of national ambition. With the completion, 
the problem shifted from the exciting risks of con- 
struction and finance to the prosaic duties of paying 
the bills, and with the shift came a natural falling- 
off in enthusiasm. 



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86 THE NEW NATION 

The Union Pacific was the longest railroad of the 
sixties, and aroused the greatest interest. In an eco- 
nomic way it is merely typical of the speculative 
expansion of the North that began early in the Civil 
War and continued increasingly thereafter* The 
United States was engaged in a period of hopeful 
growth such as has followed every panic. After a few 
years of depression, stagnation, and enforced econ- 
omy, business had revived about 1861. Confidence 
had increased, loans had been made more freely, and 
capital had taken up again its search for profitable 
investment. In the newer regions, where permanent 
improvements were least numerous, the field for ex- 
ploitation had been great. The climax of exploitation 
was reached throughout the West. 

As had been true at all the stages of the west- 
ward movement, the West was heavily in debt, and 
upon a forced balance would generally have shown 
an excess of liabilities over assets. Borrowed money 
paid much of the cost of emigration. During the first 
year the pioneer often raised no crops and lived upon 
his savings or his borrowings. He and his local mer- 
chant and his bank and his new railroad had bor- 
rowed all they could, while the creditor, living neces- 
sarily in the older communities where saving had 
created a surplus for investment, lived in the East, 
or even in Europe. The necessary conditions of set- 
tlement and development had prepared the way for 
a new sectional alignment of business interests, those 
of the Far West and the Northwest taking their tone 
from the interests of a debtor class, while those of 
the East represented those of the creditor. The pos- 



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THE WEST AND THE GREENBACKS 27 

sible cleavage was revealed as real when the United 
States Treasury Department, in its work toward 
financial reconstmction, approached the subject of 
the greenbacks. 

The legal-tender greenbacks, which were in cir- 
culation to the extent of $483,000,000 in 1865, 
constituted not only a part of the debt of the war, 
but the foundation of the currency in circulation. 
Throughout most of the war they were supple- 
mented by the notes of state banks, local token- 
money, and fractional currency, or <^ shinplasters," 
of the United States. Coin ceased to circulate in 
1862 and was used only by those whose contracts 
obliged them to pay in gold or silver. In 1863 
Secretary Chase inaugurated a system of national 
banks, to circulate a uniform currency, secured by 
United States bonds, but these did not become a 
&ctor in business imtil the state bank notes had 
been taxed out of existence in 1865. After this time 
national banks were formed in large numbers, re- 
placing the imcertain notes of the state banks with 
their own notes, which were quite as good as green- 
backs. But all paper money was below par in 1865, 
and gold remained out of circulation, at a premium, 
until the end of 1878. 

The depreciation of the greenbacks reflected a 
popular doubt as to the outcome of the Civil War. 
They entailed hardship upon all who received them 
as dollars, since their purchasing value was below 
the standard of one hundred cents in gold. When 
the Government, desperate in war time, forced its 
creditors to accept them at par, it did an injustice 



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28 THE NEW NATION 

which it regarded as real, though necessary. The 
speedy restoration of the greenbacks to par received 
the immediate attention of the Treasuiy upon the 
return of peace. 

Hugh McCulloch, of Indiana, who became Secre- 
tary of the Treasury in 1866, was a banker of long 
experience and success. He proposed, if allowed, to 
reduce the whole war debt, including the green- 
backs, to long-term bonds bearing a low rate of in- 
terest, and to create a sinking fund which should 
redeem them as they fell due. This involved the 
withdrawal from circulation of the greenbacks, and 
the destruction of that amount of the money used 
in business. Congress authorized it, however, and 
McCulloch canceled greenbacks from month to month 
until he had reduced the total to $356,000,000 in 
February, 1868. 

The withdrawal of the legal tenders had not been 
long under way before protests began to come in 
upon the Treasury and Congress from the West. 
Bad as the depreciated currency was, it was the only 
currency available for the active business of the 
country. If the greenbacks should go there would be 
nothing to take their place until coin should finally 
emerge from hiding. The reduction of the volume 
of money in a time of increasing business would en- 
force upon each dollar an enlarged activity and a 
greater market value. The price of money rising, 
the price of all commodities measured in money 
would necessarily fall, and in a period of falling 
prices the West thought it saw financial catastrophe. 
There was enough real truth in the contention that 



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THE WEST AND THE GREENBACKS 89 

resmnption meant a fall in prices for the Treasury to 
be compelled to make the di£B.cult choice between 
this evil and the other evil of a depreciated cur- 
rency forced upon the people. 

The creditor East regarded the possible increase 
in the purchasing value of the dollar with entire 
complacency. Its selfish interests harmonized with 
sound theories of finance. But in the debtor West 
the process had so different an aspect that the finan- 
cial obligations of the United States were obscured 
by the local interest. 

The great " boom " of the West began after the 
depreciation had commenced. Most of the Western 
debts, whether on the farm of the settler, the stock 
of the merchant, or the bonds of the industrial cor- 
poration, had been created in legal-tender dollars of 
the value of the depreciated greenbacks. Any appre- 
ciation which might come to the greenbacks must in- 
crease the content-value of the debt. If ^^ dollars,'^ 
borrowed when they were worth sixty cents in gold, 
were to be repaid in ^^ dollars " worth eighty or more 
cents in gold, the debtor was repaying one third 
more than he had received, and no appeal to the im- 
portance of public credit could make him forget his 
loss. He resented not only the decrease in the actual 
amount of money, but the appreciated value of the 
remainder. 

McCulloch, trained in finance, was ready to sacri- 
fice the debtor for the sake of national solvency, — 
and, indeed, one or the other had to yield. But Con- 
gress felt the pressure, which was strong from all 
the West, and most strong from the Northwest, be- 



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80 THE NEW NATION 

tween Pittsburg and Chicago, whose industry had 
been reorganized during the years of war. In Febru- 
ary, 1868, the retirement of more greenbacks was 
forbidden by law, the amount then in circulation 
being $356,000,000. The inflation which war had 
brought about was legalized in time of peace, and the 
Supreme Court ultimately ruled ^ that the issue of 
legal tenders, in either war or peace, is at the free 
discretion of Congress. 

Like every other West, the West of 1868 was in 
debt; like every other debtor community, it was 
liable to yield to theories of inflation, and was prone 
to look to politics for redress of grievances. The 
farmers of Massachusetts and Connecticut had fol- 
lowed Shays for this purpose in 1786 ; Ohio and 
Kentucky had attacked the second Bank of the 
United States when it forced their banks to pay 
their debts ; and now the Northwest listened to poli- 
ticians who told them that more greenbacks would 
cure their ills. 

The advocates of the Greenback movement urged 
that the legal tenders be retained as the foundation 
of the currency, and that all bonds and interest pay- 
able in ^* lawful money" be paid in paper. By thus 
increasing the volume of greenbacks in circulation 
they hoped to avoid a fall in prices or an increased 
pressure on the debtor. Wherever men were heavily 
in debt, they accepted this doctrine. George H. Pen- 
dleton, of Ohio, became its most prominent spokes- 
man, though it received the support of men as far 
apart as Thaddeus Stevens and B. F. Butler, and on it 

^ In the oases of Enox vs, Lee and Jnilliard vs. Greenman. 



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THE WEST AND THE GREENBACKS 81 

as an issue Pendleton sought to obtain for himself the 
Democratic nomination for the presidency in 1868. 

The aspirations of Pendleton, when his friends 
brought Ids *^ Ohio Idea " to the national conven- 
tion, in Tammany Hall, New York, on July 4, were 
opposed by the similar desires of Chief Justice 
Chase, who still wanted the Presidency, and Horatio 
Seymour, the Democratic war Governor of New 
York. In its leader, commenting on the convention. 
Harper^ 8 Weekly asserted that «* The Democratic 
Convention of 1864 declared the war a failure. The 
loyal people scorned the words and fought on to an 
unconditional victory. The Democratic Convention 
of 1868 declares that the war debt shall be repu- 
diated. And their words will be equally spumed by 
the same honorable people." Pendleton failed to 
secure the nomination, which went to Seymour, on 
the twenty-second ballot, with Francis P. Blair, Jr., 
for the Vice-Presidency, but the " Ohio idea" was em- 
bodied in the platform of the party, although Sey- 
mour distinctly disavowed it. 

Pledged to what the East commonly regarded as 
repudiation, the Democratic party was severely 
handicapped at the beginning of the campaign. Not 
only could their opponents reproach Seymour as a 
Copperhead, but they could profess to be frightened 
by Wade Hampton and the ^* hundred other rebel 
officers who sat in the Convention." Already in- 
cluding^^ treason," and disloyalty, the indictment was 
amended to include dishonor, by the Eepublicans, 
who scarcely needed the strong popularity of Grant 
to carry them into office. 



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82 THE NEW NATION 

The Bepublican party was compelled to disguise 
itself as " Union " in 1864, and it paid for the dis- 
guise during the next four years. Upon the death 
of Lincoln, the Tennessee Democrat, Andrew John- 
son, took the oath of office. The bond which kept 
Democrats and Eepublicans together as Unionists 
had dissolved with the surrender of Lee, so that 
Johnson was enabled to follow his natural bent as a 
strict constructionist. His policies had carried him 
far away from the radical Eepublicans before Con- 
gress convened for its session of 1865-66, and led 
to a positive breach with that body in 1866. 

The quarrel between Johnson and the Bepublican 
leaders was occasioned by his views upon the rights 
of the Southern States, conquered in war and held 
within the military grasp of the United States. It 
was his belief, as it had been Lincoln's, that these 
States were still States and were in the Union, even 
though in a temporarily deranged condition. As 
President, entrusted with force to be used in execut- 
ing the laws, he regarded himself as sole judge of 
the time when force should no longer be needed. 
And in this spirit he offered pardon to many leaders 
of the Confederacy in May, 1866. He followed am- 
nesty with provisional governments, and proclaimed 
rules according to which the conquered States should 
revise their constitutions and reestablish orderly and 
loyal governments. He had reorganized the last of 
the eleven States before Congress could interfere 
with him. 

The difference between Johnson and his Bepub- 
lican associates lay in the character of the restored 



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THE WEST AND THE GREENBACKS 8S 

electorates in the South. The whole white popula- 
tion had, in most States, been implicated in seces- 
sion. There was no Union faction in the South that 
remained loyal throughout the war. Pardoned and 
restored to a full share in the Government, these 
Southern leaders would come back into Congress as 
Democrats, and with increased strength. The Thir- 
teenth Amendment abolished slavery, and raised the 
representation of the negroes in the South from the 
old three-fifths ratio to par. Every State would come 
back with more Eepresentatives than it had had be- 
fore the war, and with the aid of Northern Demo- 
crats it was not unlikely that a control of Congress 
might be obtained. 

To Northern Bepublicans it was unreasonable 
that the conquered South should be rewarded instead 
of punished, and that any theory of reconstruction 
should risk bringing into power the party that 
Union men, headed by Lincoln, had defeated in 
1864. Politicians, interested in the spoils of office, 
were enraged at the thought of losing them. Dis- 
interested Northerners, who had sacrificed much to 
save the Union, believed it unsafe at once to hand 
it over to a combination of peace Democrats and 
former *^ rebels." Yet this was Johnson's plan, and 
Congress, with radical Eepublicans in control, set 
about to prevent it. 

Although Johnson, as President, controlled the 
patronage, Congress possessed the power, if not the 
moral right, to limit him in its use. No appointment 
could be made without the consent of the Senate, 
which was Republican. In 1867 Congress enacted 



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84 THE NEW NATION 

that no removal should be made without the same 
consent, in a Tenure-of-Office Bill that brought the 
dispute to a climax. More important than this power 
of concurrence was the exclusive right of each house 
to judge of *' the elections, returns, and qualificap 
tions " of its own members. So long as the Southern 
Senators and Eepresentatives were out of Congress 
no power could get them in without the consent of 
either house. Violent advisers of the President argued 
that a Congress excluding the members of eleven 
States by prearrangement was a ^^ rump," and with- 
out authority, but they failed to influence either the 
conduct of the majority or the acts of Johnson. 

In the Thirty-ninth Congress, which sat in 1865 
and 1866, it was the problem of the leaders, Charles 
Sumner in the Senate and Thaddeus Stevens in the 
House, to hold the party together and to block the 
designs of the President. In the House, the heavy 
Bepublican majority made this easy. In the Senate 
the majority was slighter, and could be kept at two 
thirds only by unseating a Democratic Senator from 
New Jersey, after which event both houses were able 
to defy Johnson and to pass measures over his veto. 
The vetoes began when Johnson refused his consent 
to the Freedmen's Bureau and the Civil Bights Bills. 
These and all other important acts of reconstruction 
were forced upon the President by the two-thirds 
vote. 

The split, so far as foimded upon honest diver- 
gence in legal theory, was embarrassing. It was made 
disgraceful by the violence of the radical Eepublicans 
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THE WEST AND THE GREENBACKS 85 

Congress sent the Fourteenth Amendment to the 
States for ratification. In 1867 it passed its bills for 
actual reconstruction under the control of the army 
of the United States, and defied Johnson to inter- 
fere by refusing to allow him to remove o£BiciaIs 
from office. 

Johnson carried himself through the partisan 
struggle with ability and success. His language was 
often extreme, but he enforced the acts which Con- 
gress passed as vigorously as if they had been his 
own. So far as any theory of the Constitution met 
the facts of reconstruction, his has the advantage, 
but in a situation not foreseen by the Constitution 
force outranked logic, and the radical Republicans 
with two-thirds in each house possessed the force. 
There was no lapse in the President's diligence and 
no flaw in his official character which his enemies 
could use. They began to talk of impeachment in 
1866, but could find no basis for it. 

The Tenure-of-Office Act furnished the pretext 
for impeachment. Advised by his Attomey-Greneral 
that it was unconstitutional, Johnson dismissed the 
Secretary of War, Edwin M. Stanton, for whose 
protection the law had been passed. In removing 
Stanton he broke with Grant, commanding the army, 
over a question of veracity, and gave to Congress its 
chance. In February, 1868, the House of Represent- 
atives voted to impeach him. 

The trial of Andrew Johnson before the Senate 
dragged through April and May. The articles of 
impeachment were long and detailed in their descrip- 
tion of the unquestioned bad manners of the Presi- 



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86 THE NEW NATION 

dent, but the only specific violation of law cited was 
in the case of Stanton, and here it could be urged 
both that the law was unconstitutional and that it 
was so loosely drawn that it did not really cover this 
case. In brief, it was the policy of Johnson that was 
on trial, and it was finally impossible to persuade 
two-thirds of the Senators that this constituted a 
high crime or a misdemeanor. The President was 
acquitted in the middle of May, while the Repub- 
lican party turned to the more hopeful work of Meet- 
ing his successor. 

In the fight over Johnson party lines had been 
strengthened and defined so that no Unionist, not in 
sympathy with congressional reconstruction, could 
hope for the nomination. No other issue equaled this 
in strength. The greenback issue was condemned in 
a plank that denounced '^all forms of repudiation as 
a national crime," but ran second to the basis of re- 
construction. No other candidate than Ulysses S. 
Grant was considered at the Chicago Convention. 

Few men have emerged from deserved obscurity 
to deserved prominence as rapidly as General Grrant. 
In 1861 he was a retired army officer, and a failure. 
In 1863, as the victor at Fort Donelson and at Yicks- 
burg, he loomed up in national proportions. In the 
hammering of 1864 and 1865 it was his persist- 
ence and moral courage that won the day. In 1868, 
as commander of the army, and fortunate in his 
quarrel with Johnson, he was the coveted candi- 
date of both parties, for he had no politics. Held by 
his associations to the Republican leaders, he was 
nominated at Chicago on the first ballot, with 



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THE WEST AND THE GREENBACKS 87 

Schuyler Colfax, of Indiana, as his Yioe-Ptesi- 
dent. 

The nomination of Grant occurred as the impeach- 
ment trial was drawing to a dose. Before Congress 
adjourned it readmitted several of the Southern States 
that had been restored under the control of Bepubli- 
can majorities. Tennessee was already back; the new 
States were North Carolina, South Carolina, Georgia, 
Florida, Alabama, Louisiana, and Arkansas. Only 
three States remained under provisional control when 
Grrant was elected in November and seated in the 
following March. As he took the oath of office there 
were few, North, South, or West, who did not rejoice 
in his election ; he had defeated the Greenback 
pretension, which endeared him to the East; the 
West remembered that he had been born and bred 
in the Mississippi Valley; and to the South he pre- 
sented the dean hands of the r^pilar army officer, 
and the welcome promise of his letter of acceptance, 
^*Let us have peace." 

BIBLIOGRAPHICAL NOTE 

For general aocoonts of the Far West in this period consult 
K. Coman, Economic Beginrungs of the Far West (2 yds., 1912), 
and F. L. Faxson, The Last American Frontier (1910). These 
shoald he sapplemented by £. L. fiogart, Economic History of 
the United States (1907), K. Coman, Industrial History of the 
United States (2d ed., 1910), W. A. Scott, The Repudiation of 
State Debts (1893), and W. C. Mitchell, History of the Green- 
backs. The more valnahle memoirs include H. McCulloch, 
Men and Measures of Half a Century (1888), and J. G. Blaine, 
Twenty Years of Congress (2 yols., 1884). A brilliant analysis 
of the financial interests of the debtor sections is M. S. Wild- 
man, Money Inflation m the United States (1905). Rhodes oon- 



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38 THE NEW NATION 

tiniies to famish a comprehensire narratiye, and is paralleled 
by the shorter W. A. Dunniiig, Reconstruction^ Political and 
Economic^ 1865-1877 (in The American Nation, voL 22, 1907). 
A detailed acoonnt of impeachment politics is in D. M. DeWitt, 
Impeachment and Trial of Andrew Johnson (1903), and in J. A. 
Woodbnm, The Life of Thaddeus Stevens (1913). J. F. Davis, 
T?ie Union Pacific Railway (1894), is the standard acoonnt of 
the early movement for a continental railroad. S. L. Clemens 
(Mark Twain) presents a vivid picture of frontier life in Rough' 
ing It (1872), while A. B. Paine, Mark Twain (3 vols., 1912), 
contains mnch material of general historical interest for this 
period. 



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CHAPTER m 

THE BBSTOBATION OF HOME RULE IK THE SOUTH 

The eight Southern States whose votes were cast 
in 1868 were far different from the States of the 
same names in 1860, and were, like the three still 
outside the Union, largely under the control of rad- 
ical Sepublicans. Bestoration, after a fashion, they 
had received, but it had been accompanied by a rev- 
olution in society, in politics, and in economic life. 
^^Beconstruction " is an inappropriate name for what 
took place. 

Many efforts have been made to show the price 
paid by the South for its attempt at independence, 
but these have always failed to be exact. No scheme 
of accounting can uncover all the costs. It is a suffi- 
cient suggestion as to the total that a million men, 
at the prime of life, were diverted from ordinary pro- 
duction for about three years. Not only did the South 
lose the products of their labor, but it lost numy of 
them, while its houses, bams, and other permanent 
improvements wore out, were burned, or went to 
pieces from lack of care. Its slave property was de- 
stroyed. Poverty was universal within the region of 
the Confederacy when Johnson issued his amnesty 
proclamation and the troops came home. 

The most immediate problems before the Southern 
planter in the spring of 1865 were his dilapidated 



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40 THE NEW NATION 

buildings, his spring crops, and his labor supply. 
Without money or credit, he needed all the stiffness 
of a proud caste to hold off bankruptcy. The daugh- 
ter of a prominent Mississippi planter told later how 
her father, at seventy years, did the family washing 
to keep his daughters from the tub. A society whose 
men and women took this view of housework (for the 
daughters let their father have his way) had much 
to learn before it could reestablish itself. Yet this 
same stubbornness carried the South through the 
twenty trying years after the war. 

The system of slave labor was gone, but the ne- 
groes were stiU the chief reliance for labor. It appears 
from the scanty records that are available that the 
planters expected to reopen the plantations using the 
freedmen as hired laborers. In 1865 and 1866 they 
tried this, only to find that the negro had got beyond 
control and would not work. Supervision had become 
hateful to him. A vagrant life appealed to his desire 
for change. At best, he was unintelligent and indo* 
lent. In a few years it became dear that the old type 
of plantation had vanished, and that the substitute 
was far from satisfactory. 

Failing at hiring the negro for wages, the planter 
tried to rent to him a part of the estate. But since 
the tenant was penniless the landlord had to find 
much or all of the tools and stock, and too often had 
to see the crops deserted while the negro went riding 
around the county on his mule, full of his new inde- 
pendence. The census records show the decline of 
the plantation as the labor system changed. In 1860 
the average American farm contained 199 acres, 



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THE RESTORATION OF HOME RULE 41 

while those of the eleven seceding States ranged in 
average from 245 in Arkansas, to 430 in Georgia, 
and 591 in Texas* All were far above the national 
average, for the economics of the plantation system 
impelled the owner ever to increase his holdings. In 
1870, and again in 1880, the reports show a rapid 
decline. The average for the whole country went 
down from 199 to 134 acres in the twenty years, as 
intensive agriculture advanced, but the South de- 
clined more rapidly than the whole, and in 1880, in 
all but two States, the average farm was less than 
half its size before the Civil War. 

The vagrant, shiftless freedman was a social prob- 
lem as well as economic. To fix his new status was 
the effort of the legislatures that convened in 1865, 
under the control of those who had qualified as loyal 
in Johnson's scheme. In several States laws were 
passed relating to contracts, apprenticeship, and va- 
grancy, under which the negro was to be held to 
r^ular work and the employer was given the right 
to punish him. The laws represented the opinion of 
the white citizens that special provisions were needed 
to control and regulate the negro population now 
that the personal bond of the owner for the good be- 
havior of his slaves was canceled. To the North, 
still excited and nervous in 1865, the laws appeared 
to embody an overt attempt to restore the essentials 
of slavery. They served to embitter Congress toward 
Johnson's plans, and to convince Republicans that 
the professed loyalty of former Confederates was 
hypocritical, — that these must not be permitted to 
return at once to federal office or to Congress. 



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42 THE NEW NATION 

It was not until the summer of 1867 that Con- 
gress substituted governments of its own design for 
those which Johnson had erected by proclamation. 
These, meanwhile, had proceeded to revise their con- 
stitutions and to adopt the Thirteenth Amendment, 
which was proclaimed as part of the Constitution in 
December, 1866. The direct hand of Congress was 
shown in the strengthening of the Freedmen's Bu- 
reau in the spring of 1866, and the passage of the 
Fourteenth Amendment in the following summer. 

The Freedmen's Bureau had its excuse in the 
poverty and ignorance of the negroes who crowded 
about the invading armies. Toward the end of the 
war it was authorized to administer abandoned 
property, and to aid the f reedmen in farming upon 
the same. It did wide charitable and educational 
work in easing the abrupt change from slavery to 
freedom, and would have been dissolved a year after 
the return of peace had not Congress maintained it 
to offset the tendencies of Johnson's administration. 
Hereafter the agents of the Bureau were thrown 
into politics until 1872. 

The permanent government of the conquered 
South by the army was repugnant to even radical 
Northerners, yet the white inhabitants were Demo- 
cratic almost to the last man, and if restored to civil 
rights would control their States. The only means 
of developing a Southern Eepublican party that 
might keep the South " loyal " was the enfranchise- 
ment of the freedman, for which purpose the Four- 
teenth Amendment was submitted. The agents of 
the Bureau were expected not only to feed and 



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THE RESTORATION OP HOME RULE 48 

clothe the negroes, but to impress upon them the fact 
that they owed their freedom to the Republicans. 
Some spread the belief that the Democrats desired 
to restore slavery. Many built up personal machines. 
The responsibility upon these white directors of the 
negro vote was great, and was too often betrayed. 
Generally not natives, and with no stake in the 
Southern community, they lined their own pockets 
and earned the unkindly name of ** carpet-baggers." 
The Territories had always known something of this 
type of ruler, but the States, hitherto, had known 
bad government only when they made it themselves. 

The Reconstruction Acts of 1867 ordered the 
President to divide the South into five military dis- 
tricts, whose commanders shoidd supersede all the 
state officers whom Johnson had restored. With 
troops behind them, these commanders were, first, 
to enroll on the voting list all males over twenty-one. 
The negroes, before the adoption of the Fourteenth 
Amendment, were thus given by Congress the right 
to vote in their respective States, and were included 
in the lists. Excluded from the lists were the lead- 
ers of every Southern community, those whites who 
had held important office in the Confederacy ; and 
none was to be enrolled, white or black, until he had 
taken an ironclad and offensive oath of allegiance. 

Based upon the list of voters thus made up, state 
conventions were to be summoned to revise the con- 
stitutions. In every case they must modify the laws 
to admit the status of the freedmen, must ratify the 
Fourteenth Amendment with its guaranty of civil 
rights, and mp[st ^xteQd the right of suffrage to the 



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44 THE NEW NATION 

blacks. When all these things had been done, with 
army officers constantly in supervision, the residting 
constitutions were to be submitted to Congress for 
final approval or rejection. 

No constitutional theory ever met all the problems 
of reconstruction. The war had been fought on the 
basis that no State can get out of the Union. If 
this was true, then all the States were still States, 
and it was a reasonable presidential function to re- 
store order and withdraw the troops. The unreason- 
able result of this theory was the immediate restora- 
tion of an enlarged influence to those very men who 
had tried to break the Union, at a moment when the 
greenback movement threatened the foundations of 
public faith. Yet Congress, by pretending to read- 
mit or restore States, denied that they were still 
States, and by implication conceded the principle for 
which the Confederacy had contended: that the 
members of the Union coidd get outside it. The 
power of Congress to seat or unseat members, how- 
ever, placed it beyond all control. Every effort to 
get the courts to interfere broke down, when the 
suits were directed against the President (Missis- 
sippi V8. Andrew Johnson), or the Secretary of War 
(Georgia vs. Stanton). A personal suit that pro- 
mised some relief (^£!x parte McCardle) was evaded 
by a sudden amendment of the law relating to 
appeals. The situation was unpremeditated, and the 
Constitution made no provision for its facts. In the 
end, reconstruction must be judged by its results 
rather than by its legality. If it brought peace, 
restored prosperity, safeguarded the Union, and 



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THE RESTORATION OP HOME RULE 45 

created no new grievances of its own, it was good, 
whatever the Constitution. 

Johnson enforced the Reconstruction Acts with 
care, and the Southern conventions, meeting in the 
autumn of 1867, sat into the following winter. In 
five of the States tiie roll of electors showed a ma- 
jority of negroes, and in none were conservatives 
able to control the election of delegates. The old 
leaders were still disfranchised, and many of them 
could not believe that the North would permit the 
radicals to subject them to the control of illiterate 
negroes. The resulting conventions contained many 
negroes and were dominated by white Republicans, 
carpet-baggers, or scalawags as the case might be. 
An active part in directing them was taken by the 
officers of the Freedmen's Bureau, while the &eed- 
men were consolidated by the secret ritual of the 
Union League. Only Tennessee escaped the ordeal, 
she having ratified the Fourteenth Amendment so 
promptly that Congress could not evade admitting 
her in 1866. 

An analysis of the conventions of 1867 reveals the 
extent of the political revolution which Congress in- 
tended to thrust upon the South, whose industrial 
revolution was now well advanced. Planters had 
begun already to break up their estates and entrust 
small holdings to cash renters, or share tenants, 
known as <* croppers." Their financial burdens were 
heavy, but with intelligent government and reason- 
able commercial credits from the North, the prob- 
lems of labor and capital might be met. But the men 
who must control the economic future of the South 



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46 THE NEW NATION 

were excluded from the Government as traitors. 
Their places were filled by Northern adventurers and 
by negroes. The Mississippi convention included 
seventeen negroes, and was called the *^ bkck and 
tan." Inexperience and incompetence were in con- 
trol, leading to extravagance and dishonesty, but the 
conventions were generally superior to the legisla- 
tures which followed them. 

Framing new constitutions, most of the States had 
met the demands of Congress by the summer of 1868, 
with the respectable portion of the South looking on 
in desperate silence. The war had left no grievances 
equal to those now being suffered. Seven of the new 
constitutions were adopted in time for the radicals to 
give to their States votes in the election of 1868. Al- 
abama, making the eighth, was allowed to vote under 
a constitution which Congress had forced upon her 
after it had failed of ratification by the people. Only 
Georgia and Louisiana, of these eight, did not give 
their votes to Grant. Only Virginia, Mississippi, and 
Texas remained without the pale when Grant was in- 
augurated in 1869. 

The completion of reconstruction in its formal 
sense was reached during Grant's first Congress. 
Mississippi completed her process in February, 1870. 
She had in 1868 voted down the reconstruction con- 
stitution, taking courage in the leadership of a conser- 
vative governor, Humphreys. When he was removed, 
and replaced by a Northern governor, the conserva- 
tives lost heart and ratified the constitution that they 
had rejected. Their delay cost the State one more 
humiliation, since in the interval th^ f^ilteenth 



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THE RESTORATION OP HOME RULE 47 

Amendment had been submitted by G)ngress and 
made a condition of readmission for the recalcitrant 
States. A Republican legislature, the first fruit of 
reconstruction, accepted this and sent to Washington 
as the new Mississippi Senators the Northern mili- 
tary governor, Ames, and a negro preacher named 
Revels. 

Virginia was readmitted in January, 1870. Her 
original loyal government under Pierpont, which Lin- 
coln had respected, had been supplanted by a military 
regime, having lost its last chance for recognition 
when it rejected the Fourteenth Amendment in 1867. 
Under congressional direction a negro-radical conven- 
tion made a new constitution which was forced upon 
the people in January, 1870. Texas, too, was in her 
final stage of restoration in 1870, and like Virginia 
and Mississippi was readmitted upon conditions that 
had become more onerous since the passage of the 
Reconstruction Acts in 1867. 

Eleven States, all the old Confederacy, had been 
restored by the spring of 1870 ; but one, Georgia, 
was ejected after restoration, and thus became the 
last item in congressional reconstruction. Li 1868 
Georgia had ratified her new constitution and moved 
her capital from its ante-bellum location at Milledge- 
ville to the new town growing upon the ashes of 
Atlanta. She had ratified the Fourteenth Amend- 
ment, but her first legislature had so poorly read 
the meaning of Congress that it expelled every negro 
whom the radicals had elected to membership. Con- 
gress had thereupon declined to seat the Georgia 
delegation at Washington, and had renewed the pro- 



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48 THE NEW NATION 

bationary period until the legislature, humbled and 
browbeaten, had undone the expulsion, whereupon 
Georgia received her final recognition. 

The arbitrary acts of Congress, passed by the radi- 
cals over the unvarying vetoes of Johnson, find little 
sanction in the Constitution, but it is to be expected 
that the laws shoidd suffer in a time of war. Congress 
held off the day of restoration until it saw in the South 
what its majority believed to be loyal governments. Its 
majority could not believe that any party but its own 
was loyal, and was thus led to a policy much more de- 
batable than that of actual reconstruction. Step by 
step it moved. The abolition of slavery, in the Thir- 
teenth Amendment (effective December 18, 1865), 
was expected by all and accepted without a fight. 
The next amendment, inspired by a fear that the 
freedmen would be oppressed and by a hope that 
they might be converted into a political ally of the 
Eepublicans, was submitted to the States before the 
Beconstruction Acts were passed, and was pro- 
claimed as part of the Constitution July 28, 1868. 
Only compulsion upon the Southern States procured 
its ratification. It left negro suffrage optional with 
the States, but threatened them with a reduction in 
representation in Congress if they refrained from 
granting it. In the Southern States Congress had 
already planted a negro electorate by law. The Fif- 
teenth Amendment forbade the denial of the right 
to vote on grounds of race, color, or previous condi- 
tion of servitude, and was not submitted to the States 
until after the inauguration of General Grant. A 
fear that the South would disfranchise the freedmen, 



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THE RESTORATION OF HOME RULE 40 

pay the price, and revert to Democratic control seems 
to have been the prime motive in its adoption. When 
it was proclaimed, March 80, 1870, the radical Re- 
publicans had done everything in their power to save 
themselves, and had inflicted on the conquered States, 
in malice, ignorance, or mistaken philanthropy, a 
condition that in the North, with its trifling number 
of negroes, was tolerated with reluctance. 

The South was in name completely restored in 
1870, but neither restoration nor reconstruction was 
in fact far advanced. In the latter process it was yet 
clearing away the wreckage of the institution of 
slavery, breaking up the plantations, devising new 
systems of tenure and wage, rebuilding the material 
equipment that the war had left desolate. The former 
process was only commenced. It was unthinkable 
that an American community should permit itself to 
remain subject to the absolute control of its least 
respected members, yet this was the aim of white 
disfranchisement and negro suffrage. Law or no law, 
the restoration of the South was not complete until 
its government was back in the control of its re- 
sponsible white population. 

Almost without exception, until 1870, the South- 
em State Governments were what Congress had 
chosen to make them. Their Senators and Representa- 
tives in Congress were Republican, commonly of the 
carpet-bag variety. Their governors, administrative 
officers, and legislatures were Republican, too. Rarely 
were they persons of property or standing in their 
communities, and often, as their records show, they 
were both black and illiterate. Had all possessed 



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50 THE NEW NATION 

good intentions they could hardly have hoped to meet 
the local needs, which called for a wise revision of 
law in order that the community might recover and 
live. That their work should be accompanied by er- 
ror and waste was inevitable. 

From the contemporary accounts of travelers in 
the South, from public documents, from the growing 
body of Southern biography and reminiscence, it is 
easy to gather a mass of detail upon the extravagance 
of the Beconstruction Governments. Printing bills 
and salary lists rose without a corresponding increase 
in service done. When expenditures exceeded the rev- 
enues, loans were created carelessly and recklessly. 
For negroes, only a few months out of the cotton- 
field, there was an irresistible attraction in the plush 
carpets, the mahogany desks, and the imported cus- 
pidors that the taxpayers might be forced to provide 
for the comfort of their servants. A free and continu- 
ous lunch, with ample food and drink, was set up in 
one of the capitols. Gratuitous waste was the least of 
the burdens inflicted upon the South. 

It is unreasonable to lay all the corruption of the 
Eeconstruction Governments to the account of the 
congressional policy. The period of the Civil War 
was one of abuse of power by local officials every- 
where. It took a Tweed in New York to drive a 
Northern public to revolt, and a Nast to focus pub- 
lic attention upon the crime. In other States, where 
rogues were less brutal in their methods, or prose- 
cutors less acute, the evil ran, not unnoticed but 
unchecked. In the South the same phenomena were 
resented with greater vigor than in the North be- 



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THE RESTORATION OP HOME RULE 51 

cause the crimes were more openly and clumsily 
committed, and because they were the work of ** out- 
siders." 

Deliberate theft of public money was so common 
as to occasion no surprise. In no State were books 
so kept that the modem student can be sure he 
knows where all the money went. Graft in con- 
tracts, fraud in the administration of schools and 
negro-relief schemes, sale of charters and votes, ille- 
gal issues of bonds, improvident loans to railroads, 
combined to enrich the office-holder and to increase 
the volimie of public debts. A long series of repudi- 
ations of these debts injured Southern credit for 
many years. South Carolina occasioned the most 
vivid description of the orgy in a book entitled T%e 
Prostrate State, by a Maine abolitionist and Repub- 
lican, named Pike ; but several other States would 
have furnished similar materials to a similar his- 
torian. 

So &r as law was concerned, the South was help- 
less in those regions in which the negroes approached 
a majority. The military garrisons which Congress 
kept on duty saw to it that the freedmen were pro- 
tected, yet were unable in the long run to control 
the white population. It is a vexed question whether 
negro violence or white was the first to appear, but by 
1867 events had begun to point the way to the elimi- 
nation of negro control by force or fraud. By law 
it could not be destroyed unless the whites struggled 
and argued for negro votes, treating the negroes as 
citizens and equals, which was generally as impossi- 
ble as an acceptance of their control. 



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52 THE NEW NATION 

The Ku-Klux Klan was a secret movement, with 
slight organization, that appeared earliest in Ten- 
nessee, but spread to nearly every crossroads in the 
South. It began in the hazing of negroes and carpet- 
baggers who were insolent or offensive to their 
neighbors. Its members rode by night, in mask, with 
improvised pomp and ritual, and played as much 
upoi^the imagination of their victims as upon their 
bodies. Frequently it revenged private grievances 
and went to extremes of violence or murder. From 
hazing it was an easy step to intimidation at election 
time, the Ku-Klnx Elan proving to be an efficient 
means of reducing the negro vote. It was so effi- 
cient, indeed, that Grant asked and Congress voted, 
in 1871, special powers for the policing of the South. 
In this summer a committee of Congress visited 
Southern centers and accumulated a great mass of 
testimony from which a picture of both the Ku-Elux 
Klan outrages and the workings of reconstruction 
may easily be drawn. The reign of terror subsided 
by 1872, but it had done much to dissuade the negro 
from using his new right, and had started the move- 
ment for home rule in the South. 

That the normal politics of the South was Demo- 
cratic is shown by the votes of the border States, 
where a population of f reedmen had to be assimilated 
and Congress could not interfere. Delaware, Mary- 
land, and Kentucky voted against Grant in 1868, 
although all the restored Confederate States but two 
voted for him. In Georgia the Democrats swallowed 
their pride, electioneered among the negroes, and 
elected a conservative State Government in 1870. 



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54 THE NEW NATION 

Tennessee escaped negro domination from the start. 
Virginia, late to be readmitted, had consolidated her 
white population as she watched the troubles in South 
Carolina and Mississippi, and never elected a radical 
administration. In North Carolina, after a fight that 
approached a civil war, a Democratic State Govern* 
ment was chosen in 1870. The rest of the Con- 
federate States followed as opportunity offered ; after 
1872, the process was rapid, and after 1876 there 
was no Bepnblican administration in the old South. 
The Republican party, itself, abnost disappeared from 
the South at this time, A bare organization, largely 
manned by negroes, endured to enjoy the offices 
which a Republican National Administration could 
bestow, and to contribute pliant delegations to the 
national conventions of the party. But the South 
had become solid in the sense that its votes were 
recorded almost automatically for the Democratic 
ticket. 

Force and fraud played a large part in the res- 
toration of white control, but it could not have been 
effective without some connivance from the North. 
Before 1872 the keenness of Northern radicalism 
was blunted* Thoughtful Republicans began to ex- 
amine their work and criticize it. " We can never re- 
construct the South," wrote Lowell, " except through 
its own leading men, nor ever hope to have them on 
our side till we make it for their interest and com- 
patible with their honor to be so." A social order 
which needed the constant support of troops lost the 
confidence of political independents. These, as the 
presidential campaign of 1872 drew near, openly ex- 



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THE RESTORATION OP HOME RULE 55 

pressed their hostQiiy to reconstruction as carried 
out by Grrant, and threatened to prevent his reelec- 
tion. 

The first term of Grrant ended unsatisfactorily. 
His appointments to office were marked by favorit- 
ism and incapacity. He appointed the only really 
inferior man who has ever represented the United 
States in London, — one who thought it not incom- 
patible with his high office to publish a treatise on 
draw-poker, and to appear as bellwether in a min- 
ing prospectus. Grrant's personal intimates included 
Ahifty financiers. Corruption and misgovernment at 
the South were held against him, though Congress 
was properly to blame for them. Only in his stand 
for honest finance, his effort to improve the Indian 
service, and his conclusion of the disputes with Great 
Britain, could his supporters take great pride. 

The settlement with England was his greatest 
achievement. Since the summer of 1862, when the 
Alabama had evaded the British officials and had 
gone to sea, the American Minister in London had 
continued to press for damages. The Alabama claims 
were based on the assertion that the law of neutrals 
required Great Britain to prevent any hostile vessel 
from starting, in her waters, upon a cruise against 
the United States. In the face of official rebuff and 
popular sneers Charles Francis Adams formulated 
the claims. His successor, Beverdy Johnson, reached 
a sort of settlement which the Senate declined to 
ratify, and which Sumner denounced. It was Sum- 
ner's contention that the Civil War was prolonged 
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56 THE NEW NATION 

ages (perhaps $2,000,000,000, or Canada, by way 
of substitute) ought to be advanoecL So tense did 
the international situation become in 1869 and 1870 
that friends of peace were frightened. Boundaries, 
fisheries, and general claims aggravated the situa- 
tion, which was given into the hands of a Joint High 
Commission, hastily sunmioned to meet in Washing- 
ton in 1870. The resulting Treaty of Washington, 
and the successful arbitrations which followed it, 
eliminated Sumner's extreme contention but vindi- 
cated the main American daims and founded Anglo- 
American relations on a more secure basis than they 
had ever known. It was Grant's great triumph, but 
it was a political danger as well, for the negotiator 
in charge, Charles Francis Adams, loomed up as the 
possible presidential candidate of the Bepublican 
dissenters. 

The Liberal Republicans included the enemies of 
Ghrant as well as dissatisfied reformers of all sorts. 
Carl Schurz, the great Grerman-American indepen- 
dent, was their leader. Horace Grreeley, whose 2W- 
bune had done much to make the Bepublican party 
possible, gave them his support Charles Francis 
Adams was not indifferent to them. Salmon P. Chase 
wanted their nomination. Young newspapermen, like 
Whitelaw Reid and Henry Watterson, tried to con- 
trol them. And the new group of civil service re- 
formers, disappointed in Grant, hoped that the new 
party would take a step toward better government. 
At Cincinnati, in May, 1872, they met in mass con- 
vention, and nominated Horace Greeley and Gratz 
Brown. Their platform denounced Bepublican re- 



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THE RESTORATION OP HOME RULE 57 

construotion, urged the return to self-goyemment in 
the South, and advocated civil service reform, specie 
payments, and maintenance of public credit. The 
schism became more threatening when the Demo- 
crats saw a chance through fusion, and nominated 
the same candidates at Baltimore in July. 

No quainter political figure has appeared in Ameru 
ioa than Horace Greeley, thus transferred from his 
editorial office to the stump. Long used to the free- 
dom of the press, he had advocated many things in 
his lifetime, had examined and exploited unpopular 
social reforms, had contradicted himself and retraced 
his tracks repeatedly. The biting cartoons of Nast 
exploited all these; but no contrast was so absurd as 
that which brought to the great denouncer of slavery 
and the South the support of the party of the South. 

The Republican Convention renominated Grant 
at Philadelphia without opposition, refused Colfax a 
second term, and picked Henry Wilson for Yice- 
Fresident. Its platform, as in 1868, was retrospec- 
tive, taking pride in its great achievements and 
assuming full credit for the war, reconstruction, and 
financial honor. It offered its ticket to all the States 
for the first time since 1860, and elected Grant with 
ease. The inharmonious Democrat-Liberal-Repub- 
lican alliance increased the Republican majority, 
but the returns from the South confirmed the sus- 
picion that home rule was in sight. 

Restored, completely to themselves, four years 
later, the Southern Governments ceased to play 
much part in national affairs and continued the 
economic rebuilding of their region. It was thirty 



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58 THE NEW NATION 

years after the war before the South, in population 
and business, had recovered from its devastation, 
and even then it was far from subordinating its local 
politics to national issues. 

BIBLIOGRAPHICAL NOTE 

The writings of Rhodes and Dunning contain the best com- 
prehensive accounts of political reconstruction. For greater 
detail, the series of doctoral dissertations on reconstruction in 
the several States, directed by Professor Dunning and printed 
generally in the Columbia University Studies, has great value. 
In W. L. Fleming, Documentary History of Reconstruction (2 
vols., 1906), important selections from the sources have been 
printed ; the same writer's CivU War and Reconstruction in 
Alabama (1905) is the best account of the process in a single 
State. J. A. Woodburn, Thaddeus Stevens, is useful. The old 
and new economic systems of the South receive their keenest 
interpretation in the works of U. B. Phillips and A. H. Stone. 
The Annual Cyclopaxlia continues valuable ; the Report of the 
Ku-Eluz Committee is invaluable (42d Congress, 2d Session, 
Senate Report, No. 41, 13 vols.). Harper's Weekly, which sup- 
ported Grant in 1872, was the most prominent journal of the 
period. C. F. Adams, Jr., has contributed to the diplomatic 
history of these years his Charles Francis Adams (1900, in 
American Statesmen Series), and his " Treaty of Washing- 
ton " (in Lee and Appomattox, 1902). Elaborate details of the 
arbitrations are in J. B. Moore, History and Digest of the In" 
temational Arbitrations to which the United States has been a 
Party (6 vols., 1898). An interesting series of recollections of 
reconstruction events, by Watterson, Reid, Edmunds, and oth- 
ers, was printed in the Century Magazine during 1913. 



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CHAPTER IV 

THE PANIO OF 1678 

^ Abe not all the great oommunities of the West- 
em World growing more oomipt as they grow in 
wealth? " asked a critical and thoughtful journalist, 
Edwin L. Grodkin, in 1868, as he considered the re- 
lations of business and politics. He answered him- 
self in the affirmative and found comrades in his 
pessimism throughout that intellectual class in whose 
achievements America has taken conscious pride. 
For at least ten years they despaired of the return 
of honesty. James Bussell Lowell, decorated with 
the D.C.L. of Oxford, and honored everywhere in 
the world of letters, was filled with doubt and dis- 
may as late as 1876, at ^^ the degradation of the 
moral tonel Is it, or is it not," he asked, '^a result 
of democracy? Is ours a ^government of the people 
by the people for the people,' or . . . for the bene- 
fit of knaves at the cost of fools? " 

It was not without reason that serious men were 
fearful in the years in which military heroes domin- 
ated in politics, and in which commerce struggled 
with its revolution. Had they foreseen the course of 
the next generation, noted the progress of new ideas 
in government, the extension of philanthropy and 
social relief, and the passion for education that swept 
the country, they need not have despaired. Godkin, 



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60 THE NEW NATION 

himself, could not have made a living from his Nor 
tion^ with its high ideals, its criticism, and its de- 
spondency, in a land that was wholly rotten. The 
young college presidents of the period could not have 
found a livelihood in a country that was not funda- 
mentally sound. At Harvard, Charles William Eliot 
broke down the old technique of culture and enlarged 
its range ; at Michigan, James Burrill Angell proved 
it possible to maintain sound, scholarly, and non- 
political education, in a public institution supported 
by taxation ; in a new university a private benefactor, 
Johns Hopkins, gave to Daniel Coit Oilman a chance 
to show that creative scholarship can flourish in a de- 
mocracy • But the essential soundness of the Bepublic 
was as much obscured in 1868 as its wealth had been 
in 1861, and for the present the objects on the sur- 
face, brought there by violent convulsion, represented 
its less creditable part. 

The years of Grant's Presidency were filled with 
unsighdy episodes, that were scandalous then and 
have been discouraging always. In his first year of 
office. Jay Grould and James Fisk, tempted by the 
premium on gold, tried to comer the market, and 
Grant's public association with the speculators 
brought upon him fair reproach. Tweed, exposed 
and jailed after a long fight, revealed the dose alli- 
ance between crooked politics and business in the 
cities, and became a national disgrace. Less promi- 
nent than these but far from proper were Schenck 
and Fremont. The latter was arrested in France, 
charged with promoting a railroad on the strength of 
land grants that did not exist. He had been close to 



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THE PANIC OF 1878 61 

the old Bepnblican organization, and the figurehead 
of the radicals in 1864, so that his notoriety was 
great. Schenck, while Minister in London, posed as 
director of a mining company, and borrowed from 
the promoters of the scheme the money with which 
he bought his shares. When the company proved 
insolvent, and perhaps fraudulent, Grant was forced 
to recall him. Critics who saw dishonesty or low 
ethical standards in these men were ready to see in 
the carnival of the Beconstruction Governments 
wholesale proofs of decadence. 

During the campaign of 1872 yet another item 
was added to the unpleasant list. Letters were made 
public showing how Congressmen had taken pay, or 
its equivalent, from men behind the Union Pacific 
Eailroad. The scandal of the Cr^it Mobilier touched 
men in all walks of life, beginning with Schuyler 
Colfax, Vice-President of the United States, includ- 
ing Blaine, Allison, and Garfield, Wilson and Dawes, 
and other men who no longer held office. Some of 
these denied the charges and proved their innocence. 
But none entirely escaped the suspicion that their 
sense of official propriety was low, and their list 
sampled the Bepublican party at all its levels. One 
of the victims, Colfax, talked freely in 1870 of gifts 
received — a carriage from a Congressman and 
horses from an express company. 

Li 1872 the notorious Butler aimed at the gov- 
ernorship of Massachusetts. He failed to get the 
Bepublican nomination, but the strength of his can- 
didacy showed the uncritical devotion of many vot- 
ers to success. He resmned his seat in Congress, 



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62 THE NEW NATION 

unabaslied, and put through an act properly increas- 
ing the salaries of Washington officials, but applying 
also to the men who voted for it and to the session 
just ending. Its makers went home to explain their 
part in the '' salary grab " to their constituents, and 
many never returned to Congress. 

Other improprieties of the first Administration of 
Grant came to light in his second term. His Secre- 
tary of War, Belknap, confessed to the sale of offices. 
In the Treasury Department were uncovered the 
whiskey frauds which tainted even Grant's private 
secretary. And the Speaker of the House, Blaine, 
was shown to have urged a railroad company to 
recognize his official aid, promising not to be a ^^ dead- 
head in the enterprise " in its future service. 

There is no better illustration of the commercial 
ethics of the sixties than may be found in the letters 
of Jay Cooke, philanthropist and financier. With a 
lively and sincere piety, and an unrestrained gener- 
osity, he at once extended hospitalities to the politi- 
cal leaders of the day, carried their private specula- 
tions on his books, and performed official services to 
the Government. It was impossible to tell where his 
public service ended and his private emolument 
began, but there was nothing in his life of which he 
was ashamed. A friend of General Grrant, and liberal 
patron of his children, Cooke was actually entertain- 
ing the President at his country home just outside 
of Philadelphia when the failure of his banking 
house precipitated the panic of 1878. 

There had been financial uneasiness abroad and 
in the United States for several months, but few had 



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THE PANIC OF 1873 63 

anticipated the collapse of credit tliat followed the 
suspension of Jay Cooke and Company, September 
18, 1873. If this house failed, none could be re- 
garded as safe. Jay Cooke had established his repu- 
tation during the Civil War through his ability to 
find a market for United States bonds. After the 
war he had carried his activity and prestige into 
railways. In 1869 he had become the financial agent 
of the Northern Pacific, and customers, encouraged 
by their good bargains in the past, continued to in- 
vest through him as he directed. His personal fol- 
lowers, numerous and confident, had been taught to 
believe his credit as sound as that of the Govern- 
ment whose bonds he had handled. When he col- 
lapsed, overloaded with Northern Pacific securities, 
in which his confidence was enthusiastic, the panic 
was so acute that the New York Stock Exchange 
closed its doors for ten days, to prevent the ruinous 
prices that forced sales might have created. Thirty 
or more banking houses were drawn down by the 
crash within forty-eight hours. Others followed in all 
the business centers, while trade stood still through 
the paralysis of its banking agents. 

The distribution of the panic throughout the 
United States followed the usual course. In the first 
crisis, banking houses broke down, unable to meet 
the runs of their depositors or their original obliga- 
tions. The depositors next, unable to secure their 
own funds or to obtain their usual loans, were driven 
to insolvency. After the failure of banks came that of 
railroads, the wholesale houses, and the factories. As 
these last defaulted, the loss was spread over their 



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64 THE NEW NATION 

employees, their contractors, and their creditors. 
Confidence was everywhere destroyed. Investments 
were lost, or lessened, or put off indefinitely in their 
payments. After a few days the acnte crisis was 
over, but the resulting depression brought stagna- 
tion to business. Industries marked time, at best; 
expansions were out of the question; new enter- 
prises were not heard of. From 1878 until 1879 
the United States was engaged in recovery from the 
injury which the panic had done and from the weak- 
ness which it had revealed. 

The panic, followed by five years of economic 
prostration, was only occasioned by the failure of 
Cooke. Its real causes lie throughout the period of 
Civil War expansion. Never had the daily necessi- 
ties of the United States equaled its production, and 
the resulting surplus, available for permanent im- 
provements, was larger than ever in the sixties be- 
cause of the growing use of machinery. Funds for 
investment, produced at home and increased through 
the strong foreign credit of the United States, 
tempted and aided the speculative development of 
the North and West. Yearly greater sums were sunk 
in municipal improvements that brought in no return, 
or in railroads that were slow in paying, or in errors 
that were a dead loss. The loss from the Civil War 
was an added charge upon the surplus. Gbeat &rea 
in Boston and Chicago consumed more of it. By 
1870 the United States was using surplus at a rate 
that threatened soon to exhaust it. When the limit 
should be reached, new enterprises must necessarily 
cease, and all that were not wisely planned must fall, 



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TBE PANIC OF 1878 65 

dragging down others in their mins. For months be- 
fore the fiulure of Jay Cooke, business had been 
dangerously near this margin. His failure, caused by 
his inability to find a market for Northern Facifio, 
merely precipitated the inevitable crash. 

The faulty currency, outstanding since the war, 
and adding to the business uncertainly, now aggra- 
vated the panic when it broke. The greenbacks were 
slowly rising in value. They profited by the growing 
credit of the United States, and received a special 
increase because of the development of business. 
After 1866 business transactions grew in niunber 
and volume more rapidly than the amount of avail- 
able money, and this, driven to greater activity in 
circulation, rose in value from the increased demand. 
As the purchasing value of the dollar increased, 
prices, measured by the greenbacks, necessarily fell, 
while the equivalent of every debt that had to be 
paid in a specified number of dollars as steadily rose. 
Indeed, so great was the increase of production from 
the new farms, reached by the new raUroads, and 
supplying raw materials for the new factory pro- 
cesses, that prices fell, even when stated in terms of 
gold. In a period of falling prices and appreciating 
currency, the gap between the i)oor and the rich was 
widened. The debtor carried a growing burden while 
the creditor harvested an unearned increase. Persons 
who lived on fixed salary or income profited by the 
fluctuations, but commercial transactions were made 
more difficult for the debtor. 

The organized Greenback movement had figured 
in politics during the campaign of 1868, and made a 



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66 THE NEW NATION 

special appeal to the debtor section during the hard 
times after 1873. The Bepublican Congress had, in 
1869, sealed the professions of the party's platform 
by passing a resolution ^^to strengthen the public 
credit," in which it declared ^^that the faith of the 
United States is solemnly pledged to the payment in 
coin or its equivalent," of the greenbacks, and that 
the United States would not take advantage of its 
creditors by paying off its "lawful-money " bonds in 
depreciated paper. All debts created before the war or 
during its early years had lost through depreciation, 
just as the later debts had gained through the reverse. 
Despite this pledge, advocates of greenback infla- 
tion, with Butler among their leaders, became more 
numerous in both parties after the panic, and an at- 
tempt was made to have Congress reverse itself. 
Grant's Secretary of the Treasury gave a new con- 
struction to the law by reissuing during the critical 
days of the panic some $26,000,000 of greenbacks 
that had been called in by McCuUoch. He raised the 
total outstanding to $382,000,000, and Congress 
in 1874 passed a law increasing the amount to 
$400,000,000, in an act named by its opponents the 
" Inflation Bill." To the surprise of many. Grant 
sharply vetoed the act, adhering to his views of 1869 
on the evils of an irredeemable paper currency. 
During the next winter John Sherman, Senator from 
Ohio, induced Congress to take a step in fulfillment 
of the guaranty which Grant had saved. On Janu- 
ary 14, 1875, it was provided that the Treasury 
should resume the payment of specie on demand on 
January 1, 1879. 



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THE PANIC OF 1878 67 

Ultimately Congress was saved from the act of 
repudiation which the Greenbackers urged upon it, 
but while the movement flourished it added another 
to the catalogue of troubles with which men like 
Godkin and Lowell were distressed. Easterners, in 
general, had as little understanding of the West as 
they had had of the race problem in the South. They 
were disposed to attribute to inherent dishonesty the 
inflation movement, and to ignore the real economic 
grievance upon which it was founded. The suspicions 
directed against the ethical standards of the West 
were increased by the Granger movement, to which 
the panic gave volume and importance. 

Among the social phenomena of 1873-74 was the 
sudden emergence in the Northwest of a semi-secret, 
ritualistic society, calling itseU the <^ Patrons of Hus- 
bandry," but popularly known as the " Grange." It 
was founded locally upon the soil, in farmers' clubs, 
or granges, at whose meetings the men talked poli- 
tics, while their wives prepared a picnic supper and 
the children played outdoors. It had had a nominal 
existence since 1867, but during the panic it unex- 
pectedly met a new need and grew rapidly, creating 
1000 or more local granges a month, until at its max- 
imum in 1874 it embraced perhaps 20,000 granges 
and 1,600,000 persons. In theory the granges were 
grouped by States, which latter were consolidated in 
the National Grange; in fact, the movement was 
almost entirely confined to the region north of the 
Ohio Biver, and even to the district northwest of 
Chicago. 

Such a movement as the Grrange, revealing a com- 



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68 THE NEW NATION 

mon purpose over a wide area and in a great number 
of oitizens, could not but affect party allegiance and 
the conduct of party leaders. Simultaneously with 
its development the legislatures of the Northwest — 
Illinois, Wisconsin, and Iowa — became restive under 
existing conditions, and assumed an attitude which 
became characteristic of the Grange, — one of hos- 
tility to railroads and their management. With the 
approval of the people, these States passed, between 
1871 and 1874, a series of regulative acts respecting 
the railways, which were known at the start as the 
^^ Granger Laws," and which became a permanent 
contribution to American government. 

To Eastern opinion the Grreenback movement had 
been barefaced repudiation; the Gh*anger movement 
seemed to be confiscation ; for every law provided 
a means by which public authority should fix the 
charge imposed by the railroad upon its customer. 
Both movements need to be studied in their local 
environment, which at least explains the Western 
zeal in clamoring for the greenbacks, and shows that 
in the Granger movement the West saw farther than 
it knew. 

The Civil War period marks a new era in tiie his- 
tory of American railways. Prior to the panic of 
1837, the few lines that were built were local. Few 
could foresee that the railway would ever be more 
than an adjunct to the turnpike and canal in bring- 
ing the city centers closer to their environs. In the 
revival of industry after the panic of 1887, the 
mileage increased progressively, and before the next 
panic checked business in 1857 the tidewater region 



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THE PANIC OP 187S 69 

was well provided, and the Alleghanies had been 
crossed by several trunk lines whose heads extended 
to the Lakes and to the Mississippi. But in these 
years the change was of degree rather than of kind. 
The lines were built to supplement existing routes, 
like the Erie Canal, the Lakes, the Ohio Biver, or 
the Mississippi. They connected communities already 
well developed and prosperous, and in undertaking 
new enterprises promoters had figured upon captur- 
ing the profits of existing trade. 

Li the new epoch of the sixties there were only 
new fields to conquer. The great enterprises were 
forced to speculate upon the development of the pub- 
lic domain and to find their profits in the business 
of communities to which they themselves gave birth. 
Natural waterways and roads extended little west of 
Chicago. The new fields were entered by the rail- 
roads without prospect of any competition but that 
of other railroads. The resulting communities, bom 
and developed between 1867 and 1873, were pecu- 
liarly the <neatare8 of, and dependent on, the rail- 
way lines. 

Thii^ inevitable dependence on railway^ colored 
the history of Wisconsin, Iowa, and Minnesota, and, 
to a lesser degree, of all the West. While men were 
yet prosperous and sanguine and without adequate 
railway service, they offered high inducements to 
promoters of railways. Once the roads were built 
and the communities began to pay for them and to 
maintain them, the dependence was realized and anti- 
railway agitation began. The fact that they were 
commonly built on money borrowed from the East 



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TO THE NEW NATION 

threw debtors and creditors into sectional classes in- 
jurious to both. 

The antagonism to railways was increased because 
these yet regarded their trade as private, to be con- 
ducted in secrecy, with transportation to be sold at 
the best rates that could be got from the individual 
customer. The big shipper got the wholesale rate ; 
the small shipper paid the maximum. Favoritism, dis- 
crimination, rebates, were the life of railway trade, 
and railway managers objected to them only because 
they endangered profits, not because they felt any 
obligation to maintain uniformity in charges. 

In a community as dependent on the railways as 
the Northwest was, the iniquity of discriminatory or 
extortionate rates was soon seen. The East, with 
rival routes and less dependence on staple interests, 
saw it less clearly. The charges were paid grumb- 
lingly in good times ; in bad times, when the rising 
greenbacks squeezed the debtor West and the panic 
of 1878 stopped business everywhere, the farmers 
soon made common cause. They seized upon the 
skeleton organization of the grange and gave it life. 
In 1874 their organized discontent compelled at- 
tention. 

The Granger Laws were an attempt to establish 
a new legal doctrine that railways are quasi-public 
because of the nature of the service which they 
render and the privileges they enjoy. This principle 
was overlaid in many cases by the human desire to 
punish the railroads as the cause of economic dis- 
tress, but it was visible in all the laws. It is an old 
rule of the common law that the ferryman, the baker. 



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THE PANIC OP 1878 71 

and the innkeeper are subject to public control, and 
railways were now classified with these. In Wiscon- 
sin, the ^^ Potter " Law established a schedule with 
classified rates, superseding all rate-eards of rail- 
roads in that State. Illinois created a railroad and 
warehouse commission with power to fix rates and 
annul warehouse charters. In Iowa the maximum 
rates were fixed by law. 

The railroads failed to realize at once what the 
new laws meant. They denounced them as confisca- 
tory, and attacked them in court as wrong in theory 
and bad in application. Even admitting the principle 
of regulation, the laws were so crudely shaped as to 
be nearly unworkable. Farmer legislators, chosen on 
the issue of opposition to railways, were not likely 
to show either fairness or scientific knowledge. Com- 
ing at the same time with the panic of 1878, it is 
impossible to measure the precise effect of any of 
these laws, and all were modified before many years. 
But the railroads* objection lay beneath the detail, 
and the fundamental fight turned on two points — 
the right of public authority to regulate a rate at all, 
and whether state regulation was compatible with 
the power of Congress over interstate commerce. 

By 1876 the appeals of the railroads against the 
constitutionality of these Granger Laws had gone 
through the highest state courts to the Supreme 
Court of the United States. In the spring of 1877 
that body handed down a definitive decision in the 
case of Munn v8* the State of Illinois in which it 
recognized that the <^ controlling fact is the power to 
regulate at alL'* It held that when the institutions 



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78 THE NEW NATION' 

in question (in this case warehouses) established 
themselves, they did so ^< from the beginning subject 
to the power of the body politic to require them to 
conform to such regulations as might be established 
by the proper authorities for the common good." 
It upheld the rate laws, declared that they were 
not an infringement upon the powers of Congress, 
and thus gave formal sanction to a new doctiine i& 
American law. 

The legal consequences of the ^^ Granger CaS^d ^ 
extended through the ensuing generation. The need 
for public intervention grew steadily stronger, and 
as time went on it became clear that this control 
could not be administered by orators or spoilsmen, 
but called for scientific training and permanence of 
policy. It was one of many influences working to 
reshape American administrative practice. 

The Granger movement had close relations with 
the panic of 1878, although it .must anyway hav6 
appeared in the Northwest at no remote date< As h 
political force it soon died out, leaving the principld 
of regulation as its memorial. With thd gradoid te^ 
currence of prosperity the Northwest found new in* 
terests, and as early as 1877, when tiie decision^ 
were made, the passion had subsided. 

It was, however, a gloomy United States that 
faced the end of its first century of independence, in 
1876. Pessimism was widely spread among the best 
educated in the East. Public life was everywhere 
discredited by the conduct of high officials. The 
South was in the midst of its struggle for home rule, 
which it could win only Jhrough wholesale force and 



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TOB PANIC OP 1878 78 

fraud. The West was discouraged over finance and 
^till depressed by the panic. Yet Philadelphia went 
ahead to celebrate the centennial as though it were 
wdixig the century as hopefully as it had begun. 

The E^q)osition at Philadelphia this year was a 
TevelatipiiL to the United States. Though far sur- 
pa99ed by later *^ world's fairs," it displayed the 
wide re9P^^ce9 <>f the Uuited States and brought 
home the di£Ference between American and European 
ciyilization. The foreign exhibits first had a chasten- 
ing influence upon American exuberance, and then 
stimulated the development of higher artistic stand- 
ard^. Jn ingenuity the American mind held its own 
9g^jit all competition. But few Americans had trav- 
eled, the cheap processes of illustration were yet 
unknown, and in the resulting ignorance the United 
States had been left to its assumption of a superior^ 
ity unjustified by the facts. From the centennial 
year may be dated the closer approach of American 
standards to those of the better classes of Europe. 

In the summer of 1876 the thirty-eighth State, 
Colorado, was added to the Union. It had been sev- 
enteen years since the miners thronged the Kansas 
and Nebraska plains, bound for <« Pike's Peak or 
Bust I '' In the interval the mining camps had be- 
come permanent communities. Authorized in 1864 
to form a State, they had declined to accept the 
responsibility and had lingered for many years with 
only a handful of inhabitants. Now and then entirely 
isolated from the United States by Indian wars, they 
had pirayed for the continental railroad, only to be 
disappoioted when the Union Pacific went through 



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74 THE NEW NATION 

Cheyenne instead of Denver. One of the branches 
of the Union Pacific was extended to Denver in 
1870, and thereafter Colorado grew in spite of the 
panic of 1873. Grant began to urge its admission in 
bis first Administration, and signed a proclamation 
admitting it in 1876. It came in in time to cast three 
Bepublican electoral votes in the most troablesome 
presidential contest the United States had seen. 

BIBLIOGRAPHICAL NOTE 

Among the more valuable books of biography and reminis- 
oenoe for this period are B. Ogden, Life and Letters of Edwin 
Lawrence Godkin (2 vols., 1907) ; H. £. Soadder, James Rus^ 
sell Lowell (2 vols., 1901) ; C. E. Norton, ed., Letters of J. R. 
Lowell (1894) ; Reminiscences of James B, AngeU (1912) ; J. 
T. Austen, Moses CoU Tyler, 1836-1900 (1911); J. G. Blaine, 
Twenty Years of Congress ; E. P. Oberholtzer, Jay Cooke ; 
and A. B. Paine, Th, Nast (1904). The Cr^it Mobilier may 
best be studied in Rhodes, in J. B. Crawford, Credit Mobilier 
of America (1880), and in the reports of the committees of 
Congress that investigated this scandal (42d Congress, 2d Ses- 
sion, House Beport no. 77). J. W. Million, State Aid to Rail- 
ways in Missouri (1896), gives a good view of raiboad promo- 
tion schemes. F. Carter, When Railroads were New (1909), is 
a popular sununary. In J. B. Commons (ed.), Documentary 
History of American Industrial Society (10 vols., 1910- ), are 
various documents relating to the Grange, which organization 
received its classic treatment in E. W. Martin, History of the 
Granger Movement (1874 ; his illustrations should be com- 
pared with those in J. H. Beadle, Our Undeveloped West, in 
which some of them had originally appeared in 1873). There 
are numerous economic discussions of the Grange in the peri- 
odicals, which may be found through Poole's Indexes, the best 
work having been done by S. J. Buck. The Chapters of Erie 
(1869), by C. F. Adams, is a valuable picture of railroad ethics. 
Much light is thrown upon financial matters by the Annual 
Beports of the Secretary of the Treasury and J. D. Bichard- 
son (ed.). Messages and Papers of the Presidents (10 vols.). 



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CHAPTER V 

THB HATES ADMINISTRATION 

The reelection of Grant in 1872 was almost auto- 
matic. No new issue had forced itself into politics to 
stir up the old party fires or light new ones. The old 
issues had begun to lose their force. Men ceased to 
respond when told that the Union was in danger; 
they questioned or ignored the statement. Many of 
them contradicted it and voted for Greeley in 1872, 
but they were impelled to this by repulsion from Se- 
publican practice rather than by attraction to Demo- 
cratic promise. Yet, on the whole, the habit of voting 
the Union or Bepublican ticket retained its hold 
on so many in the North that Grant's second term 
was iosured, and it was even possible that a Bepub- 
lican successor might profit by the same political 
inertia. 

The second term (1873-77) added no strength to 
Grant or to his party. Throughout its course, admin- 
istrative scandals continued to come to light, striking 
at times dangerously near the President, but failing 
to injure him other than in his repute for judgment. 
The period was one of financial depression and dis- 
couragement. The best intellect of the United States 
was directed into business, the professions, and edu- 
cational administration. Politics was generally left 
to the men who had already controlled it, and these 



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78 THE NEW NATION 

were the men who had risen into prominence in the 
period of the Civil War. 

A new and not a better type was brought into 
American politics by the Civil War. Notwithstand- 
ing the bad manners and excesses of ante-bellum 
politics, the leaders had been men of defined policy, 
only occasionally reaching high office through trickery 
or personal appeal. Now came the presence of an in- 
tense issue which smoothed out other differences, 
magnified a single policy, — the saving of the Union, 
— and gave opportunity to a new type of intense, 
patriotic, narrow mind. Men of this type dominated 
in the reconstruction days. As the sixties advanced, 
their number waa recruited by men who had won 
prominence and popularity on the battlefield, who 
used military fame as a step into politics, and who 
came into public life with qualifications adapted to 
an issue that was closed. 

Few of the leaders of the period 1861 to 1876 ever 
grew into an understanding of problems other than 
those of the Civil War. The most eminent of them 
were gone before the latter year. Lincoln was dead ; 
Grant had had two terms; Stevens was gone; Sumner 
had been driven from party honor before his death ; 
Chase had died Chief Justice, but unhappy. With 
these men living, lesser men had remained obscure. 
As they dropped out, a host of minor leaders, 
trained to a disproportionate view of the war and 
ignorant of other things, controlled affairs. 

About these men the scandals of the Grant Admin- 
istrations clustered, and their standards came to be 
those of the Republican party organization. They 



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THE HAYES ADMINISTRATION 79 

represented a dead issue, which they had never di- 
rected when it was alive, and were chosen by voters 
whose choice had become automatic. In their hands 
office tended to become a thing to be enjoyed for its 
own sake, not a trust to be fulfilled. 

If the Bepublican organization was drifting into 
the control of second-rate men who misrepresented 
the rank and file, the status of the opposition was no 
better. At the South the Democratic party was openly 
founded on force and fraud. In the deliberate judg- 
ment of the white population of the South, negro 
control was intolerable and worse than any variety 
of political corruption that might be necessary to 
prevent it The leaders of the party in this section 
had borne so important a part in the Confederacy 
that it was hopeless to think of them for national 
leaders, while they could meet the Northern charge of 
fraud only by the assertion of a greater alternate 
evil, which their opponents would not recognize as 
such. The South could be counted on for Demo- 
cratic votes, but not as yet for leaders. 

In the North and West the Democratic party was 
still weakened by its past. Its leaders of the early 
sixties, where they had not joined the Union party, 
were Copperheads, and were as little available as ex- 
Confederates. One of them, Seymour, whose loyalty, 
though he was in opposition to Lincoln, is above ques- 
tion, had been nominated and defeated in 1868. So 
few had been available in 1872 that the party had 
been reduced to the indorsement of Horace Greeley. 
Even the scandals of the Republican administration 
could not avail the Democrats unless a leader could be 



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8Q THE NEW NATION 

found free from the taint of treason and copperhead- 
ism and ^trQng enoqgh to hold the party North and 
South. 

In the paucity of leaders during Grant's seooud 
Administration the Democrato turned to New YoTk 
where a reform goyemor was producing actual results 
and restoring the prestige of his party, JJk^ other 
J)einoprat9 pl his day, Samuel J. Tilde9 h^ few 
events in hi^ Ule di^ring the siztiffi to whi^h he could 
<^ point with pride" fai th^ certain assurance that 
his fellow ci^izenf would recognize afid r^ymisd them. 
He b^ been % civiliaii find a lawyer. He had not 
broken with his party on its "war it failure " issue 
|n 18$4. He had acted harmoniously with Tammany 
HaJ) while it began its schepie of plunder, in New York 
City. But he hml turned upon that organisation f^nd 
by prosecuting the Tweed Bing had made its r^ 
nature defur. Within the party he had led the do* 
mand to turn the rascals out, and had been elected 
Governor of New York on this record in 1874. As 
Governor he had proved that public corruption was 
non-partisan and had exposed fraud among both par- 
ties so effectively that he was clearly the most avail- 
able candidate wh^ the Pemocratip Convention met 
in St. Louis in 1876, 

The only competitors of Tilden for the Demo-, 
cratic nomination were ^^ favorite sons." Thomas A. 
Hendricks, a Greenbacker, was offered by Indiana* 
and pushed on the supposition that this doubtful 
State could not be carried otherwise. Pennsylvania 
presented the hero of Gettysburg, General Winfield 
Scott Hancock, through whom it was hoped to bring 



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THE HAYES ADMINISTRATION 81 

to the Democratic ticket the aid of a good war record. 
The other candidates received local and scattering 
votes, and altogether they postponed the nomination 
for only one ballot. On the first ballot Tilden started 
with more than half the votes ; on the second he had 
nearly forty more than the necessary two thirds. 
Hendricks got the Yice-Plresidency^ and the party 
entered the cainpaign npon a program of reform. 

The Bepublicans had completed thei^ nominations 
solne weeks before the Democrats met^ and having 
no unquestioned leader had been forced td adjust the 
claims of several minor men. Six different men re- 
ceived as many as fifty votes on one ballot or another, 
but only three &ctions in the party stood out dearly. 
The Administration group had sounded the public 
on a third term for Grant, and receiving scanty sup- 
port had brought forward Conkling, a shrewd New 
York leader, and Morton, war Grovemor of Indiana. 
The out-and-out reformers were for Bristow, who had 
made astriking reputation as Secretary of ihe Treas- 
ury, over the frauds of the Whiskey Ring. Between 
the two groups Was the lal*gest single faction^ which 
stood for James G. Blaine from first to last. 

The political fortunes of James G. Blaine prove 
the difficulty with which a politician brought up in 
the Civil War period retained his leadership in the 
next era. Blain^e had been a loyal and radical Re- 
publican through the war. Gifted with personal 
charms of high order, he had built up a political fol- 
lowing which his imswerving orthodoxy and his serv- 
ice as Speaker of the House of Representatives 
served to widen. Never k rich man^ he had felt 



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82 THE NEW NATION 

forced to add to Lis salary by speculations and 
earnings on the side. In these he had come into con- 
tact with railroad promoters and had not seen the 
line beyond which a public man must not go, even 
in the sixties. His indiscretions had imperiled his 
reputation at the time of the Credit Mobilier scandal. 
They became common property when an old associ- 
ate forced him to the defensive on the eve of the 
convention of 1876. In the dramatic scene in the 
House of Bepresentatives when Blaine read the hu- 
miliating ^^ Mulligan" letters that he had written 
years before, tried to explain them, and denounced 
his enemies, he convinced his friends of his innocence, 
and evidenced to all his courage and assurance. But 
his critics, reading the letters in detail, were con- 
firmed in their belief that if his official conduct was 
not criminal, it was at least improper, and that no 
man with a blunted sense of propriety ought to be 
President. 

Despite all opposition, Blaine might have won the 
nomination had not a sunstroke raised a question 
as to his physical availability. He led for six ballots 
in the convention, and only on the seventh could 
his opponents agree upon the favorite son of Ohio, 
General Rutherford B. Hayes, who added to mili- 
tary distinction a good record as Governor of his 
State. 

Neither Hayes nor Tilden represented a political 
issue. Each had been nominated because of availa- 
bility, and each party contained many voters on 
each side of every question before the public. Even 
the appeal to loyalty and Union, which had worked 



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THE HAYES ADMINISTRATION 88 

in three campaigns, failed to stir the States. Blaine, 
expert in the appeal, had revived it over the propo- 
sition to extend pardon and amnesty to Jefferson 
Davis, but his frantic efforts, as he waved the 
^^ bloody shirt," evoked no general enthusiasm. The 
war and reconstruction were over, but the old par- 
ties had not learned it. 

There was doubt throughout the canvass as to 
the nature of the issue, and when the votes were 
counted there was equal doubt as to which of the 
candidates had been elected. Tilden had received a 
popular plurality over Hayes of about 250,000 
votes, but it was not certain that these carried with 
them a majority of the electoral college. Of the 869 
electoral votes, Tilden and Hendricks had, without 
question, 184; while Hayes and Wheeler were 
equally secure in 166. The remaining 19 (Florida, 
Louisiana, and South Carolina) were claimed by 
both parties, and it appeared that both claims were 
founded on widespread fraud. Unless all these 19 
votes could be secured, Hayes waa defeated, and to 
obtain them the Republican party set to work. 

For weeks between the election and the counting 
of the electoral votes the United States debated 
angrily over the result. The Constitution required 
that when Congress should meet in joint session to 
hear the returns, the Vice-President should preside, 
and should open the certificates from the several 
States ; and that the votes should then be counted. 
It was silent as to the body which should do the 
counting, or should determine which of two doubtful 
returns to count. Since the outcome of the election 



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84 THE NEW NATION 

wotild tarn upon the answer to this question, it was 
necessary to find some solution before March 4, 
1877. 

Failing to find in the Constitution a rule for de- 
termining cases such as this, Congress made its own, 
and created an Electoral Commission to which the 
doubtful cases were to be submitted. This body, 
fifteen in number, fire each from Senate, House, and 
Supreme Court, failed, as historians have since 
failed, to convince the United States that the claims 
of either Bepublican or Democratic electors were 
sound. Honest men still differ in their beliefe. The 
members came out of the Commission as they went 
in, firm in the acceptance of their parties' claims, 
and since eight of the fifteen members were Be- 
publican, the result Was a decision giving none of 
the nineteen contests to Tilden, and maiking possible 
the inauguration of Rutherford B. Hayes. 

Th^re t^iis bitter partisanship shown over the 
contest, and the l)emoorats^ with a real majority of 
popular votes, maintained that they had been robbed 
of the Pi^sidency. Excepting this, there was no 
issue that clearly separated the followers of Hayes 
from those of Tilden when the former took the oath 
of office. There was likewise, unhappily for Hayes, 
no common bond by which the President could bold 
his own party together and make a successful adminis- 
tration. 

Like three of his predecessors, John Adams, John 
Quincy Adams, and Martin Van Buren, Hayes was 
carried into office by the weight of a well-organized 
machine, rather than by his own hold upon the 



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THE HAYES ADMINISTRATION 85 

people. Like all of them he fought faction as a con- 
sequence, and every new step in administration 
forced upon him increased his embarrassment in con- 
ducting the Government. At the start, he alienated 
many Bepublicans by his policy toward the South. 

Before the election Hayes had reached the con- 
clusion that coercion in the South must be aban- 
doned. The people must be left in control of their 
own institutions, and if they mishandled them must 
take the consequences. This meant that the last of 
the States, in which only the army garrisons had 
kept the Bepublicans in office, must revert to the 
control of the Democrats. It also meant an . attack 
upon the President by those who still believed the 
S6uth a menace, and Uiose who cherished it as a po- 
litical issue, — the ^^sentimentalists controlled by 
knaves," in Godkin's language. Hayes acted upon 
his conviction as soon as he took office, withdrew 
the troops, and turned over to the South her own 
problems. Political reconstruction, as shaped by Con- 
gress, had broken down in every part, and it re- 
mained to be seen whether the constitutional recon- 
struction, as embodied in the amendments, would be 
more permanently effective. 

In addition to taking their issue from them, Hayes 
deprived the politicians of their plunder. The per- 
sonal conduct of his household added nothing to hisp 
popularity in Washington, for his wife served no 
wines and gave to the White House the atmosphere 
of the standard middle-class American family. His 
official family struck a blow at the political use of 
offices. 



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86 THE NEW NATION 

Although many of the Liberal Bepublicans of 
1872 were still dissatisfied and saw no prospect of a 
change of heart for their party, most of them had 
voted for Hayes, and one of them was taken into the 
new Cabinet. Carl Schurz became Secretary of the 
Interior, bringing into office for the first time an 
active desire to reform the civil service. Congress had 
made a timid experiment in civil service reform early 
in the seventies, but had soon wearied of it. Schurz 
announced that his subordinates would be chosen on 
merit, and acted upon the announcement. 

The storm broke at once upon the Secretary over 
the issue of the patronage, and soon reached the 
President. The offices were not only valued assets 
of Senators and Eepresentatives, who held control 
over their followers through them, but had come to 
be regarded as the cement that held the national 
party organization together. In the absence of an 
issue, the binding force of the offices had an enlarged 
importance. But Hayes generally backed up Schurz 
in the fight. The Indian Bureau, in particular, prof* 
ited by the new policy. Two serious outbreaks had 
recently occurred as the result of bad administra- 
tion. In one, Custer had been led to his destruction ; 
in the other Chief Joseph and the Nez Ferc^ had 
worried the regular army through a long campaign. 
The Democratic House of Bepresentatives had in this 
very period been striking at the army appropriations 
in order to shape Grant's Southern policy. It had 
enabled Nast to draw, in one of his biting cartoons, a 
picture of the savage, the Ku-Klux, and the Con- 
gressman shaking hands over a conunon policy. 



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THE HAYES ADMINISTRATION 87 

Scharz and his Indian Commissioner foresaw the 
changes needed, now that the range Indians had all 
been consolidated on reserves, and took this time to 
reorganize the service. 

Hayes refused to give over all the offices as spoils, 
and removed some officials for pernicious political 
activity. The most important removal was that of 
Chester A. Arthur, Collector of the Port of New 
York, whose enraged friends, Conkling among them, 
became the center of the attack on the titular head 
of the party. Sneering at the sincerity of the new 
policy, Conkling cynically declared that ^^ when Doc- 
tor Johnson said that patriotism was the last refuge 
of a scoundrel, he ignored the enormous possibilities 
of the word reform." But because Hayes did not in 
every case follow an ideal that no other President 
had even set, he lost the support of the reformers 
who soon denounced him nearly as fiercely as did the 
" Stalwarts." 

Even if Hayes had been able to keep a united 
party behind him, his Administration could scarcely 
have been marked by constructive legislation. His 
party had lost control of the House of Bepresent- 
atives in the election of 1874. The Forty-fifth Con- 
gress, chosen with Hayes in 1876, and the Forty- 
sixth, in 1878, were Democratic, and delighted to 
embarrass the Administration. Dissatisfied Bepub- 
licans saw the deadlock and laid it upon the shoul- 
ders of the President. The Democratic Congress 
checked Administration measures, and managed to 
advance opposition measures of its own. Twice 
Hayes had to summon special sessions because of the 



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88 THE NEW NATION 

failure of appropriation bills, and in his firgt winter 
the opposition endangered those policies of finance to 
which the Bepublican party had become pledged. 

The Grreenback agitation, rising about 1868 and 
stimulated by the panic of 1873, had not subsided 
when Hayes became President. It had lost much of 
its force, but there continued throughout the West, 
in both parties, a spirit that encouraged inflation of 
every sort. In Congress there were repeated efforts 
to repeal the Besumption Act of 1876, which the 
Democratic platform had denounced the next year. 
And when a sudden increase in the production of 
silver reduced its price, a silver inflation movement 
was placed beside the Grreenback movement. 

The United States had used almost no silver coin 
between 1834 and 1862 because the coinage ratio, 
sixteen to one, undervalued silver and made it waste- 
ful to coin it. No specie was used as currency b^ 
tween 1862 and 1879, and the relative market prices 
of bullion remained close to their usual average until 
the year of panic. During the seventies the price of 
silver fell as new mines were opened in the West. 
The ratio rose above sixteen to one, and silver, from 
being undervalued at that ratio, came to be over- 
valued. It would now have paid owners of silver 
bullion to coin it into dollars at the legal rate, but 
Congress had in 1873, after a generation of disuse 
of silver, dropped the silver dollar from the list of 
standard coins. As silver fell in value, mine-owners 
asked for a renewal of coinage, and inflationists joined 
them, hoping for more money of any kind. During 
the winter of 1878 a free silver coinage bill, passed 



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THE HAYES ADMINISTRATION 8d 

by the Democratic House under the guidance of 
Bichard P. Bland, of Missouri, was under consider- 
ation in the Bepublican Senate. 

John Sherman^ the defender of gold resumption, 
was no longer in the Senate to fight this Bland Act. 
He had become Hayes's Secretary of the Treasury, 
and in this capacity was working toward resumption 
and upholding Hayes in his war on the spoilsmen. 
In his place, Allison, of Iowa, forced an amendment 
to the Bland Bill, taking away its free-coinage char- 
acter and substituting a requirement to buy a speci- 
fied amount of silver bullion each month — from 
12,000,000 to W,000,000 worth — and coin it. Thus 
amended, the House concurred in the act, which 
Hayes vetoed in February, 1878. It became a law 
over his veto. 

The Administration was embarrassed in its finan- 
dal policy, but not defeated. The Resumption Bill 
withstood attacks and, as the day for the resumption 
of specie payment approached, the price of green- 
backs refiected the growing credit of the United 
States. It reached par two weeks before the ap- 
pointed day. When that day arrived, Wednesday, 
January 1, 1879, John Sherman had the satisfaction 
of seeing the change to a coin basis effected without a 
shock. More gold was turned into the Treasury for 
exchange with greenbacks than greenbacks for re- 
demption in gold. It appeared that Horace Greeley 
had been right when he had maintained that ^^ the 
way to resume is to resume," — that few would want 
gold if they could get it. 

The adherence of Hayes to the gold standard and 



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90 THE NEW NATION 

resumption drove from his side another body of Re- 
publicans. He had now lost the reformers and the 
spoilsmen, the radical Republicans and the inflation- 
ists, and no one hoped or believed that he would re- 
call his pledge for a single term and be renominated 
in 1880 to succeed himself. The disintegration of 
his party was as complete as the collapse of its issues. 
On no subject, between 1876 and 1880, was it possible 
to bring before the public a distinctive party issue. 
The uncertainties of the campaign of 1876 were in- 
creased during the next four years. 

Both parties had ceased to represent either poli- 
cies or the people. The office-holders were in no 
sense the leaders of their communities. Industry, so- 
cial life, education, and religion had parted company 
with politics since the decline of the Union issue, 
and unless a new political alignment could be found 
there was a prospect of continued rivalry for offices 
alone. Yet men were beginning to realize that a new 
period of growth had begun during the Hayes Ad- 
ministration, and that American institutions, formu- 
lated before the Civil War, had ceased to meet in- 
dustrial needs. 

BIBLIOGRAPHICAL NOTE 

J. F. Rhodes terminates his great history with the election 
of 1876, and although he has promised sometime to continue 
it, he has as yet published only a few scattered essays upon the 
later period. A. M. Gibson, A Political Crime (1885), is a con- 
temporary and partisan account of the electoral contest ; F. L. 
Haworth, The Hayes'Tilden Disputed Presidential Election 
(1906), is a recent work of critical scholarship ; £. Stanwood 
may be relied upon for platforms, tables of votes, and other 



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THE HAYES ADMINISTRATION 91 

formal details, in his History of the Presidency, The Writings 
and Speeches of S, J. Tilden (2 vols., ed. by J. Bigelow, 1886) 
are useful, as are the Blaine books: J. G. Blaine, Ttoenty Years 
of Congress, £. Stanwood, James Gillespie Blaine (1905, in 
American Statesmen Series) ; G. Hamilton (psead. for M. A. 
Dodge), James O, Blaine (1895, a domestic biography) ; and 
the spicy Letters of Mrs. James O. Blaine (edited by H. S. B. 
Beale, 2 toIs., 1908). Other useful biographies or memoirs 
exist for R. P. Bland, Roscoe Conkling, Robert G. IngersoU, 
O. H. Flatty T. C. Flatty John Sherman^ and Carl Schurz, eto. 



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CHAPTER VI 

BUSINESS AND POLITIOS 

A GBEAT commeroial revival, affeoting the whole 
United States, began during the Administration of 
Hayes. Ingersoll had predicted it, in defining his 
candidate in 1876, when he declared: ^^ The Bepubli- 
cans of the United States demand a man who knows 
that prosperity and resumption, when they come, 
must come together ; that when they come, tiiey will 
come hand in hand through the golden harvest-fields ; 
hand in hand by the whirling spindles and the turn- 
ing wheels ; hand in hand past the open furnace doors ; 
hand in hand by the flaming forges ; hand in hand 
by the chimneys filled with eager fire, greeted and 
grasped by the countless sons of toil." In every sec- 
tion and in every occupation commerce revived during 
1878 and 1879. Manufactures began to invade the 
South ; mining-booms gave new life to the camps of 
the Far West ; the wheat-lands of the Northwest, 
reached by the "Granger" railroads and cultivated 
by great power machines, produced a new type of 
bonanza farming; in the Southwest and on the 
plains great droves of cattle produced a new type of 
cattle king ; and the factory towns of the East began 
again to grow. Connecting the various sections, the 
railroads played a new part, and built more miles of 
track in the next ten years than in any decade before 



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BUSINESS AND POLITICS 8S 

or sinoe. The whole country awoke as from an anne- 
ihetic, tested its muscles to find that they were 
stronger than ever, and set to work again. 

The silent evidence of the United States Treasury 
testifies to the prosperity of the next ten years. The 
average ezpencUtures of the United States from 1850 
to 1860 were under $60,000,000; they ranged between 
1880 to 1890 from $244,000,000 to $297,000,000 
without exhausting the supply. Yearly, despite the 
heavy drains upon it, a surplus accumulated to the 
embarrassment of the Government and the demoral- 
isation of Congress. The aggr^;ate accumulation for 
ten years was over $1,000,000,000. 

lie disbursements of the United States were 
growing at a higher rate than its population, though 
this was keeping up the traditions of a new country. 
From 81,448,821 inhabitants, with which the na- 
tion faced the Civil War in 1860, it had grown 
to 88,568,371 in 1870, and it was now, in 1880, 
50,155,788. In mobility and activity it had increased 
even more rapidly than this, for it was served by 
nearly three times as many miles of railway (87,000) 
in 1880 as when the war broke out Along the old 
frontier the percentage figures for population and 
railway mileage were highest, but everywhere a larger 
population was moving more actively, and studying 
itself more intently than ever before. It was also 
generating more internal friction than ever. In the 
silver mines at Leadville in 1878 had occurred one of 
the great forerunners of economic clash. This had 
been preceded in 1877 by the railway strikes of 
Pennsylvania and the £ast. In California, Dennis 



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M THE NEW NATION 

Kearney and the Irish were driving the Chinese from 
society in the interest of ^^ America for Americans." 
The murders by the ^^ Molly Maguires " had brought 
condign punishment upon the lawless in the anthrar 
cite region ; and throughout the East men were vaguely 
conscious of a secret society that called itself the 
Knights of Labor. 

Complexity, class interest, and the problems at 
once of labor and of capital, thrust themselves upon 
a society that had occupied its continent and used 
most of its free land. The Centennial had revived 
the study of American history from patriotic reasons. 
An intense interest in self-analysis now kept this 
alive, as Henry Adams, James Schouler, and John 
Bach McMaster devoted themselves to a scrutiny of 
historic facts, as colleges began to create chairs of 
American history, as James Ford Ehodes retired from 
his office to his study to write the history of his own 
times. In the next few years associations for the 
study of political economy, political science, sociology, 
and history multiplied the testimonies to the existence 
of a new nation. 

It was many years before the study of history and 
institutions reached the eighties and began to place 
events in their true proportion. Then it appeared that 
there was in fact a fundamental economic problem 
and that the political issues of the decade faced it 
from various angles. 

The United States had nearly reached its greatest 
capacity in production by 1880, and was no longer 
able to consume its output. Through its first century 
there had been a rough plenty everywhere, — enough 



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BUSINESS AND POLITICS 95 

food, enough work, and free land, — so that the in- 
dustrious citizen need never go hungry, although he 
was rarely able to acquire great wealth. Men had 
worked with their own hands and with the labor of 
their beasts of burden, as men had ever worked. 
Their land had appeared, indeed, to be the land of 
opportunity. Population had doubled itself in a short 
generation, and America had called upon the op- 
pressed of Europe to aid in reclaiming the plains and 
forests. With all the labor and opportunity, there 
had rarely been either an overproduction or a lack 
of work. 

The industrial revolution changed the nature of 
American society in many directions. Through an 
improved system of communication, whose results 
were first visible between 1867 and 1878, it had 
broadened the realm to be exploited, brought the 
rich plains of the West into agricultural competition 
with the Middle West and the East, and enabled an 
increased production of staples by lessening freights 
and widening the area of choice. As the result of 
rapid communication grain, cotton, and food animals 
increased more rapidly than population. The use of 
manures and a more careful agriculture on the smaller 
farms — and all the farms were growing smaller — 
further swelled the productivity of the individual 
farmer. 

Machinery increased the capacity of the laborer as 
transportation widened his choice of home. The fac- 
tories, as they were reorganized in the new period of 
prosperity, found that invention had lessened the need 
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96 THE NEW NATION 

agriculture, in iron and steel, in textiles, in shoemak- 
ing, rendered the course of manufacture nearly auto- 
matic, and when steam neared its limit in dexterity 
active minds could see eleotridly holding out a new 
promise. 

In 1880 population and the capadiy to oonsimie 
American products were growing less rapidly than 
the power to produce. The United States was finding 
every year greater difficulty in selling all its output. 
It was possible to foresee the day when overproduc- 
tion might be a menace imless there should be some 
reorganization of society to meet the new problem. 
Pending the arrival of that reorganization, prices f elL 

A study of the prices of standard commodities 
shows that there was a constant, moderate decline 
after the Civil War. During the war nominal prices, 
expressed in depreciated greenbacks, rose far above 
the normal, but when corrected to a gold basis they 
show little change. At the end of the war, however^ 
the steady decline set in ; by 1880 it was perceptible, 
and by 1890 it had come to be generally admitted. 
It continued until 1900, when the larger production 
of gold and an extended use of bank credits and 
checks, increased the volume and mobility of cur- 
rency and started a general rise in prices. Inflation- 
ists believed, in the eighties, that the falling prices 
were due to an appreciation of gold, and demanded 
more money because they so believed ; but overpro- 
duction appears to give a better explanation of the 
decline than gold appreciation. In the falling prices 
may be seen a proof of the enlarged production and a 
justification of serious study of remedial measures. 



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BUSINESS AND POLITICS ©7 

Solutions, intended to restore good prices and to 
correct social evils, became numerous as the eighties 
advanced. Tariff reformers claimed that the tariff 
was a Toocatious interference with proper freedom of 
trade, without which a foreign market for American 
surplus could not be obtained. The protected manu- 
&cturer8 retorted that only through a higher tariff 
could manufactures be developed and an enlarged 
consuming population of factory workers be created 
at home. A Western economist brushed both these 
aside and found the key to the situation in Uie disap- 
pearance of free land, and urged a single tax upon 
land as a panacea. United labor found the cause to 
be unrestricted immigration. Too much government, 
with its extravagance and corruption, was a cause in 
the mind of extreme theoretical democrats. Too little 
government was equally responsible for the discords, 
in the eyes of growing groups of socialists and com- 
munists. 

Before 1890 the United States was involved in an 
elaborate discussion of its troubles and their causes, 
but in 1880 Uie period had only just begun and its 
trend was not dear to the political leaders who were 
yet quarreling over the spoils of office. Hayes was 
ending his term in disfavor, and was passing into the 
jurisdiction of the historians, which was much more 
kindly disposed toward him than was that of his con- 
temporaries. He had gone into office without being 
the leader of his party and without having a single 
definitive issue. He had alienated one faction after 
another; while in Congress, in which both houses 
were never Republican, it was never possible to pass 



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98 THE NEW NATION 

constructive laws. The fight for the next nomination 
began soon after his inauguration. 

Grant and Blaine were the most probable candi- 
dates for the Bepublican nomination as the spring of 
1880 advanced. For the former there was a feeling of 
affection among the senatorial crowd, headed by Bos- 
coe Conkling, who had been so severely disciplined 
by Hayes. The refusal of the President to allow the 
officials of the United States to engage too actively 
in politics had brought about the dismissal of Arthur 
and Cornell from their posts, and a prolonged quarrel 
with the Senate. Hayes had won here, but the de- 
feated leaders turned upon his Southern policy, de« 
manded a ^^ strong "candidate who would really keep 
the South in check, and called for Grant as the only 
strong man who could lead his party. Grant was will- 
ing in 1880 as he would have been in 1876. Upon 
his return from his trip aroimd the world his candi- 
dacy was pressed and had strong support among Civil 
War veterans and men who were displeased with 
Hayes. 

Blaine, too, was still a candidate, drawing his 
strength from men of the same type as those who stood 
for Grant. He might have secured the nomination had 
he not been opposed by the Secretary of the Treasury, 
John Sherman, whose friends thought his distin- 
guished service in the cause of hard money entitled 
him to a reward. A special element in Sherman's 
strength was a group of pliant negro delegates, from 
the Southern wing of the party, which was brought 
to Chicago under close guard, fed and entertained in 
a suite at the Palmer House, and voted in a block as 



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BUSINESS AND POLITICS 9d 

Sherman's managers directed. None of these three, 
Grrant, Blaine, and Sherman, could please the reform 
element, that found its choice in Senator George F. 
Edmimds of Vermont, 

The convention at Chicago was marked by the 
fight of Conkling to secure unity and the nomination 
for Grant, and by the stubbornness with which the 
opposing delegates held out against. a third term and 
for their own candidates. In the end the deadlock 
was broken when the followers of Blaine and Sher- 
man shifted to the latter's floor manager, James A. 
Garfield, and gave him the nomination on the thirty- 
sixth ballot. The Vice-Presidency was thrown to the 
Conkling men, falling upon Chester A. Arthur, who 
accepted it against the desires of his leader. The plat- 
form was a ^* code of memories " as it had been in 1876 
and 1872, congratulating the party on its successes 
of the past and having no clear vision of the future. 

The Democratic party in 1880 was without leader 
or issue, as it had been since 1860. Tilden, who 
might have been renominated and run on the charge 
that he was counted out in 1876, was sick. He was 
unwilling to run unless the demand were more spon- 
taneous than it appeared to be. In its perplexity the 
party turned to a military hero who called himself a 
Democrat and had been passed over in 1876. General 
Winfield Scott Hancock had never been in active 
politics, but was now nominated over a long list of 
local candidates. William H. English, of Indiana, 
who was known to have money, and was believed to 
be ready to use it in the campaign, was the vice-presi- 
dential candidate. 



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100 THE NEW NATION 

The oanvass of 1880 was foagbt during a prosper- 
OI18 summer on issues that were largely personal. As 
Sherman said of Ohio in 1879, so he might have said 
of the country in 1880, that ** the revival of industries 
and peace and happiness was a shrewd political trick 
of the Republicans to carry " the United States. Fol- 
lowing their practice for three campaigns, the old line 
speakers dwelt upon the conditions in the South. An 
Lidiana rhyme ^ for young Democrats " ran : — 

** Sing a ■ong of shotgonSy 

Pocket f iiU of knires, 
Foor-and-twenty black ineB, 

Running for their liyes ; 
When the polls are open 

Shut the nigger's month, 
la n't that a bully way 

To make a solid South?"* 

But the audiences were unresponsive. An old politi- 
cal reporter remembers being in the national head- 
quarters late in the campaign, and hearing Blaine, who 
had been stumping for Garfield, say, ^* You want to 
fold up the bloody shirt and lay it away. It 's of no 
use to us. You want to shift the main issue to pro- 
tection." Not until the campaign was nearly over did 
a real issue emerge. 

The protective tariff had not played a large part 
in any campaign since 1860. In 1868 and 1872 both 
parties had looked forward to the reduction of revenue 
to a peacjB basis, adopting mild planks to that effect. 
In 1876 the topic had been more prominent in Uie 
platforms, but not in the canvass. In 1880 Hancock 
was questioned on the tariff during one of his speeches. 
The question was probably unpremeditated,but it took 



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BUSINESS AND POLITICS 101 

the candidate unaware, for as an officer in the regular 
army he had never given the matter thought. His 
evasive answer, that the tari£E was a local issue only, 
gave an opening to his opponents, who forced the 
tariff to a prominent place in the few remaining 
days before election. They made much of Hancock's 
ignorance, and perhaps by this maneuver offset the 
disadvantage done to Garfield by a forged letter, 
which purported to show him as a friend of cheap 
labor and Chinese immigration. Grarfield and Arthur 
were elected by a small plurality over Hancock. No 
one received a popular majority, for a third candidate, 
named Weaver, headed a Greenback-Labor ticket and 
polled 808,000 votes. 

General James A. Garfield would have become 
Senator bom Ohio in 1881 had not his election trans- 
ferred him to the Presidency. The fifty years of his 
life covered a career that was typically American. 
The son of a New England emigrant, he was bom in 
the Connecticut Beserve in Ohio. He worked his 
way from the farm through the log school to college.. 
His service on the towpath of the Ohio Canal, in 
the course of his education, became a strong adjunct 
to his popularity among the common people. He 
taught Latin and Greek after leaving college, stud- 
ied law, worked into politics, and went to the front 
upon the call for troops. He left the war a major- 
general to enter Congress, in 1863, where he sat 
until his election to the Senate in 1880. He was the 
friend of John Sherman and had been the manager 
of his campaign. Like his friend, and like most Ohio 
Bepublicans, he believed that the tariff was one of 



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102 THE NEW NATION 

the bases of prosperity in his State. In his campaign 
a young Cleveland merchant named Hanna raised 
funds among the local manufacturers on the plea 
that Bepublican success and their interests would go 
hand in hand. In his inaugural address, however, 
Garfield said nothing of the new issue which was 
threatening to enter politics, but dwelt upon the su- 
premacy of law, the status of the South, hard money, 
religious freedom, and the civil service. 

The Bepublican party had been left broken and 
in hostile camps by President Hayes ; Garfield tried 
in his Cabinet to change this and ^^ to have a party 
behind him." The State Department went to his 
rival and ally, Blaine, whose personal following was 
larger than that of any other American politician. 
The independent Bepublicans, who had seceded in 
1872 and had muttered ever since, were pleased by 
the elevation of Wa3rne MacVeagh, a Pennsylvania 
lawyer, to the post of Attorney-General. A friend of 
Conkling, who had made a striking record in the 
New York Post-Office through two terms, Thomas 
L. James, became Postmaster-General. The sensi- 
bilities of the West, always jealous of the East in 
matters of finance, were appeased by the selection of 
William L. Windom, of Minnesota, as Secretary of 
the Treasury, for ^* any Eastern man would be accused 
of being an agent or tool of the * money kings' and 
*gold.bugs' of New York and Europe." The Cabi- 
net as a whole was received with favor, but the har- 
mony which its members promised was soon disturbed. 

The appointment of Blaine as Secretary of State, 
which Garfield had determined upon a few days after 



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BUSINESS AND POLITICS lOS 

his electioii, was a blow to Hoscoe Conkling. Hayes 
liad struck at Conkling in removing Arthur and 
ComelL Now when Garfield decided to please him- 
self in the New York ooUectorship, Conkling saw in 
the act the hand of Blaine. He fell back upon the 
practioe of senatorial courtesy, and held up the con- 
firmation of the appointment. When he found him- 
self unable to coerce the President, he broke with 
him as he had broken with Hayes, and this time he 
and his colleague from New York, Thomas Collier 
Piatt, resigned their seats and appealed to the New 
York Legislature, then in session. The move was not 
without promise. Cornell was now Governor of New 
York. Arthur, with the prestige of the Vice-Presi- 
dency, left his chair in the Senate to work for the 
reelection and triumphant return of Conkling and 
Piatt, on the doctrine that the appointments of a 
President must be personally acceptable to the Sen- 
ators from the State concerned. But the New York 
Legislative failed to give the martyrs their vindicsr 
tion, and permitted them to remain in private life. 
Their friends, the ^* Stalwarts," ceased to support 
Garfield. 

James, who was not enough a follower of Conk- 
ling to emulate him, remained in the Post-Office, 
where he had already found wholesale corruption. 
It had been the practice of the Post-Office to class- 
ify the mail routes according to their method of 
transportation, and to mark those running by stage 
or rider by a star on the general list. These had 
come to be known as the ^^ star routes." The con- 
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104 THE NEW NATION 

meet the shifting needs of the Western population 
that lived away from railways and depended upon 
the stage-coach. When the business of any route jus- 
tified a better service than it was receiving, the De- 
partment was at liberty to increase the service, 
hasten speed, and raise tiie pay without a re-letting 
of the contract. During the latter seventies the 
growth of settlement throughout the remoter West 
had justified a large increase in star-route oosts, but 
James discovered not only legitimate increase but 
collusive fraud. The official in charge, in collusion 
with former Congressmen who " knew the ropes," 
and with the mail contractors, had awarded original 
contracts to low bidders who had no intention of 
fulfilling their bids. After the letting of contracts 
the compensation had been increased without investi- 
gation or reference to actual needs. 

The unearned profits had been shared by the 
promoters and the dishonest officials, and some of it 
had gone into the Bepublican campaign fund. A 
former Senator, Dorsey by name, who was indicted 
for fraud in 1882, had been Secretary of the Kepub- 
lican National Committee in 1880, and had been 
hurried to Indiana to save that State. He did this so 
effectively that his friends gave him a dinner, which 
Arthur attended, and at which the allusions to his 
methods in Indiana were but loosely veiled. Brady, 
the official in the Post-Office, had collected the usual 
assessments on federal office-holders for Garfield's 
campaign fund. When he and others were threat- 
ened with criminal prosecution they produced letters 
by which they hoped to prove that Garfield was cog- 



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BUSINESS AND POLITICS 105 

nizant of and had approved their financial methods. 
How far they might have succeeded in blackening 
the President and stopping his prosecutions must 
remain unknown, for he was shot on July 2, 1881, 
while on his way to a college celebration, and died on 
September 19. 

The murderer of Garfield declared to the police- 
man who arrested him, ^*I am a Stalwart and want 
Arthur for President." It was soon learned that he 
was a disappointed candidate for ofGlce, and irrespon- 
sible Washington gossip soon had it that Garfield's 
friends wanted him to hang, while Arthur's thought 
he was only insane. The murderer's sister, in an inco- 
herent book based on his story, asserted, ^^ Yes, the 
^Star-Bonte' business killed Garfield I The claim, 
*The Stalwarts are my friends,' hung Guiteau I " He 
was perhaps insane, and was certainly irresponsible, 
but his crime, coming simultaneously with the noto- 
riety of the star-route frauds and the demands of Conk- 
ling, emphasized the pettiness of factions and the 
need for a reform in the civil service. 

The illness of Garfield dragged on through eleven 
weeks in the summer of 1881, with bulletins one 
day up and the next down. The strain told on every 
one in the Administration. The prospect of Arthur's 
succession called attention to the fact that the Vice- 
President is rarely nominated for fitness, but is 
chosen at the end of a hot convention, in careless- 
ness, or to placate a losing side. It led soon to the 
passage of an adequate Presidential Succession Act. 
The death of Garfield threw the control to the He- 
publican faction that disliked him most. 



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106 THE NEW NATION 

Blaine, the head of Garfield*s Cabinet, was most 
directly affected by the catastrophe. He had stepped 
from the Senate into the State Department at Gar- 
field's request. While he was a receptive candidate 
for the Presidency this post suited his needs and 
gratified his taste. He loved business and liked to 
associate with men. He had a diplomatic vision that 
led him to formulate a more constructive policy than 
most Secretaries have had. 

With England, Blaine found negotiations upon 
the Isthmian Canal pending, having been taken up 
by Hayes. His attitude in his notes of 1881 failed 
to meet the approval of Great Britain, and ignored 
obligations that the United States had long before 
accepted. But it pointed to an American canal and 
was part of his larger scheme. His America was in- 
clusive of both continents, and drew him to hope for 
larger trade relations in the Western Hemisphere. 
With the approval of Garfield he had started to 
mediate in South America, in a destructive war be- 
tween Chile and Peru. He had on foot, when Gar- 
field died, a scheme for a congress of the American 
States in the interest of a greater friendliness among 
them. The invitations for this gathering had just 
been issued when Arthur reorganized his Cabinet, 
brought F. T. Frelinghuysen in as Secretary of State, 
and let Blaine out. There was no public office ready 
for him at this time, so he retired to private life 
and the historical research upon which his Twenty 
Years of Congreaa was founded. Jefferson Davis 
had just brought out his Rise and Fall of the C(ynr 
federate Government^ while the Yorktown oente- 



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BUSINESS AND POLITICS lOT 

nary, like the centennial of independence, had stimu- 
lated the market for historical works. 



BlfiUOGBAPHICAL NOTE 

The United States Censos of 1880 is more elaborate and re- 
liable than its predecessor of 1870, and may be supplemented 
to advantage by H. Y. Poor, Manual of the Railroads of the 
Untied States for 1880^ whieh contains a good sketch of railroad 
construction, and by B. P.. Porter, The West from the Census 
of 1880 (1882). £. E. Sparks, National Development (in The 
American Nation^ yol. 23, 1907), is a useful survey of the 
years 1877 to 1885, and contains a good bibliographical chap- 
ter. The bibliographies in Channing, Hart, and Turner's Ouide 
to the Study and Reading of American History (1912) are speci- 
ally valuable for the years 1876 to 1912. E. B. Andrews, The 
United States in Our Own Time (1903), is discursive and enter- 
taining. Special phases of material development may be reached 
through D. R. Dewey, Financial History of the United States; 
T. V. Powderly, Thirty Tears of Labor (1889) ; H. George, Pro-- 
gress and Poverty (1879 ; and often reprinted), and the Aldrich 
Beport on Prices (52d Congress, 2d session, Senate Report, No. 
1394). Many interesting details are to be found in W. C. Hud- 
son. Random Recollections of an Old Poliiical Reporter (1911) ; 
and J. F. Rhodes has touched upon this period in his essays, 
among which are ^ A Review of President Hayes's Adminis- 
tration in the Light of Thirty Years" {Century Magazine^ 
October, 1909) ; <«The Railroad Riots of 1877" {Scribner's 
Magazine^ Jvlj^ 1911) ; and ''The National Republican Con- 
ventions of 1880 and 1884 " (Scribner^s Magazine, September, 
1911). Among the economic journals started in the eighties, 
and containing a wealth of scholarly detail for contemporary 
history, are the Quarterly Journal of Economics and the Po- 
litical Science Quarterly, 



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CHAPTER Vn 

THE NEW ISSUES 

Gabfield died before he met his first Ciongress, 
the Forty-seventh, which was elected with him in 
1880, but he lived long enough to foresee the first 
chance to do party business that had appeared since 
1875. When Grant lost the lower house at the 
election of 1874, the Democrats gained control of 
that body and Michael C. Kerr, of Indiana, sup- 
planted Blaine as Speaker. On Kerr's death in 1876, 
Samuel J. Kandall, of Pennsylvania, took the place, 
and was continued in it through the next two 
Congresses, in the latter of which, the Forty-sixth, 
his party controlled the Senate too. It had been 
impossible to produce an agreement between the 
Senate, the House, and the President on important 
new matters. They could not always agree even on 
appropriations, and all Eepublicans felt with Mrs. 
Blaine when she wrote, after the election of 1880, 
*^ Do you take in that the House is Bepublican, and 
the Senate a tie, which gives the casting vote to the 
Bepublican V.P. ? Oh, how good it is to win and 
to be on the strong side ! " 

When the new Congress organized, Randall ceased 
to be Speaker and became leader of the minority, 
while J. Warren Keifer, of Ohio, took his place, with 
a small Eepublican majority behind him. In the 



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THE NEW ISSUES 109 

Senate the predictions of Mrs. Blaine were fulfilled, 
althougli the accident which made a President of 
Arthur left the Senate without a Vice-President. In 
the even division of the Senate, the two independent 
members controlled the whole. Judge David Davis, 
transferred ** from the Supreme Bench to the Fence," 
became the presiding ofGlcer, and generaUy voted 
with the Bepublicans, though elected as a Democrat. 
Mahone, of Virginia, an Irishman and an ez-Gonf eder- 
ate, called himself a ^^ Beadjuster," and voted with 
the Administration. These two men made it possible 
to cany party measures through Congress. 

Shortly after Congress met in 1881, Arthur re> 
organized his Cabinet, allowing the friends of Oar- 
field to resign and putting his own Stalwart friends 
in their places. The new Secretary of State, Fre- 
linghuysen, took up Blaine's policies and mangled 
them. He adhered to the general view of an Ameri- 
can canal, as Blaine had done. He pushed the influ- 
ence of the United States in Europe as far as he 
could, keeping Lowell, in England, busy in behalf 
of Irish- Americans whose lust for Home Kule got 
them into trouble with the British police. But he 
dropped the South American policy, recalled the in- 
vitations to the Pan-American Congress, and kept 
hands off the Chilean war. Blaine protested in vain 
against this humib'ating reversal. 

The decision of Arthur to take counsel from the 
Stalwarts aroused fears among others of the party 
that his would be the administration of a spoils- 
man. His first message, however, somewhat allayed 
these fears, for it dwelt at length upon the unsatis- 



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110 THE NEW NATION 

twdtorj status of the civil service, and the need for 
a merit system that should govern removals and ap- 
pointments. He promised lus support to measures 
even more thoroughgoing than the reformers had 
asked, and, in January, 1888, signed the ^ magna 
carta " of civil service reform. 

The use of public offices for party purposes had 
been regarded as a scandal by independents of both 
parties for four administrations. The long list of 
breaches of trust, revealed in the seventies, had 
made reformers feel that incompetence and spoils 
endangered the life of the nation. As late as 1880, 
they had heard a del^ate in the Bepublican Con- 
vention, when asked to vote for a civil service plank, 
exclaim indignantly : *^ Mr. President, Texas has had 
quite enough of the civil service • . . We are not 
here, sir, for the purpose of providing offices for the 
Democracy. • . . After we have won the race, as we 
will, we will give those who are entitled to positions 
office. What are we up here for?" And they had 
become used to the silent or outspoken resistance 
to their demands from men in << practical " politics. 

The history of the civil servants of the United 
States falls into three periods : Before 1829, 1829- 
65, and 1865-83. In the first period they were com- 
monly treated as permanent officials. Barely had 
they been removed for partisan purposes, although it 
had been the wail of Jefferson that ^^ few die, and 
none resign." Appointments had often been given 
as the reward for past services, but none had felt a 
need for a general proscription of officials upon the 
entry of a new President. 



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THE NEW ISSUES 111 

Andrew Jackson bronght a new practice into nse 
in 1829. His election followed a political revolution, 
in which it was believed by his supporters that the 
National Bepublican party had become corrupt. It 
was a matter of faith and pledge to turn the incum- 
bents out of office. Hungry patriots crowded round 
the jobs, while Jackson's advisers included men who 
in New York and Pennsylvania had already learned 
how to use the offices as retainers for future service. 
Advocacy of the Democratic principle of rotation in 
office was in practice easily converted into the main- 
tenance of the maxim that ^^ to the victors belong 
tibe spoils.'' 

Every President after Jackson used the offices for 
partisan purposes, and few objected to the practice 
on theoretical grounds. The simplicity of the National 
Government made the habit less destructive than it 
otherwise would have been. The spoils system did 
not enter the army or navy, the only extensive tech- 
nical departments of the United States. In other 
branches of the Government a large majority of the 
officials were unskilled penmen, whose places could 
easily be filled with others as little skilled as them- 
selves. Always a few clerks who knew the business 
were saved to guide the recruits, and the depart- 
ments were generaUy working again before a Presi- 
dent met his first Congress. 

Lincoln was not different from his predecessors in 
the use of offices. He permitted the most complete 
sweep that had yet been made, being forced to an 
unusually high percentage of new appointments by 
the necessity of removing Southerners. In his hands 



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11« THE NEW NATION 

the patronage became an additional weapon for the 
Union, upholding the leaders in Congress, and strik- 
ing at the backsliders. In the election of 1864 the 
Union party carried all the branches of the Govem- 
ment, and it had a vision of four years of complete 
control of the offices when the death of Lincoln 
brought a Tennessee Democrat into the White 
House. 

The discussion of civil service reform, on theoret- 
ical grounds, began about 1865, when the evil of 
removals for party purposes was shown to the Sen- 
ate. Johnson was trying to use the patronage for his 
own ends, in opposition to the will of the radicals in 
Congress. Reformers who maintained the iniquity 
of this custom now found temporary converts among 
the Republicans. They got a committee appointed 
on the civil service in 1866, and President Grant 
announced his conversion to the principle early in 
his Administration. 

In 1871 Congress tried the experiment of a mod- 
est appropriation ($25,000) for a reform of the civil 
service, and Grant placed the test in the hands of 
George William Curtis, a leader of the new reform. 
The commission breasted the whole current of poli- 
tics, found that Grant would not support it in cri- 
tical cases, and was abandoned by Congress after a 
short trial. The demand, however, increased, receiv- 
ing the support of the independents who were Liberal 
Republicans in 1872, and who thereafter constituted 
a menace to pariy regularity. Schurz, Godkin, and 
Curtis were their admitted leaders. In 1872 and 
1876 they persuaded the great parties to put gen- 



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THE NEW ISSUES US 

eral pledges for civil servioe reform into their plat- 
forms. Schurz, as Secretary of the Interior under 
Hayes, put their ideal partly into practice. In 1881 
they were a well-recognized body of adyocates, with 
a definite doctrine of non-partisan efficiency, which 
few politicians denied in principle or liked in fact. 

FubEc attention was focused upon the civil serv- 
ice by the events of 1881. The fight between Grar- 
field and Conkling raised not only the question of 
the relative rights of President and Senate in ap- 
pointments, but that of the use of offices for the 
support of political machines. The frauds uncovered 
in postal administration by the star-route investiga- 
tions could hardly have occurred in a department 
administered by experienced and competent officials. 
The murder of Grarfield by a disappointed office- 
seeker gave additional emphasis to the need for re- 
form, and these things coming together made possi- 
ble the passage of a civil service act earlier than its 
advocates expected. 

President Arthur recommended the reform in 
1881, and his party, chastened by the fall election 
of 1882, took up a law in the session of 1882-88. 
Eaton, one of the leading reformers, and first chair- 
man ot the Civil Service Commission, wrote the bill 
which Congress passed with little real debate. Men 
who hated the measure knew the unwisdom of oppos- 
ing it. A board of three commissioners was created 
in 1883 to classify the civil servants, prepare rules 
and lists, and conduct examinations. The classified 
service, removed from politics, began with 18,780 
officers in 1884 ; by 1896 it contained 87,044 ; by 



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114 THE NEW NATIpN 

1911, 227,657. It grew most addTely toward the 
end of each administration, as outgoing Presidents 
transfeired to it the offices tiiat they had filled. Its 
best recommendation was to be f onnd in the opposi- 
tion of politicians toward it. 

Arthur did better than the reformers had hoped 
in urging and administering the Ciyil Service Act. 
He prosecuted the star-route triab, even among his 
Stalwart friends. 

In 1882 Congress, with Arthur's approyal, took 
up a revision of the tariff. Neither of the great par- 
ties had, in 1882, received a dear mandate touching 
the tariff, although it was true that most Republicans 
were content with the system in its general outlines, 
while a considerable number of Democrats were lis- 
tening to tariff reform and asking for a tariff for 
revenue only. It had been eighteen years since the 
last general revision had taken place, and in that 
period unforeseen conditions had developed, whose 
tendency was at once to point the need for a read- 
justment of schedules and to create a class of citi- 
Ecns whose profits would be touched thereby. The 
course of financial reconstruction between 1865 and 
1875 had raised the rate of actual protection beyond 
the expectations of its advocates. 

In 1865 the revenues of the United States, amount- 
ing to $822,000,000, and far exceeding the needs of 
the Treasury in time of peace, came chiefly from the 
tariff and the internal revenue. The two taxes were 
dependent upon each other. Each increase in the 
latter had forced an increase in the former, lest 
special burdens should be laid upon American manu- 



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THE NEW ISSUES 115 

focture. The ideal of protection had neyer been lack- 
ing, nor had special interests failed to look out for 
themselves, but the dominant spirit in the war taxes 
was revenue. 

When Congress undertook to reduce the revenue 
to a peace basis, it found that every approach to the 
tariff aroused classes of interested manufacturers, 
while every attack upon the internal revenue was 
welcomed by the public. As a result, following the line 
of least resistance, most of the internal taxes were re- 
moved by 1870, leaving the tariff rates where they had 
been, and higher than any protectionist had asked. 
A large part of the tariff rate had been intended 
to equalize the internal revenue tax ; the removal of 
the latter created to that extent an incidental protec- 
tion, which was unexpected but was none the less ac- 
ceptable. Some few details of the tariff were modified 
by special acts, and there was a flat reduction of ten 
per cent in 1872. But the panic of 1873 reduced 
the revenues and frightened Congress, in 1876, into 
restoring the ten per cent. In 1882 the rates of 1865 
remained substantially unchanged, leaving the pro- 
tected industries in the enjoyment of an incidental 
protection never intended for them and created only 
by accident in the general reduction of revenue. 

Spasmodic attacks were made upon the tariff sys- 
tem throughout the seventies, but since few defended 
it on principle they failed to affect the public. The 
tariff was not a political issue. Opposition to it was 
confined to members of the Democratic party, in 
search for weapons to turn against the Republicans, 
and to theorists and economists who had little con- 



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116 THE NEW NATION 

nection with politios. There were free-trade clubs 
after 1868, though few ever wanted to establish real 
free trade. All that the free-trader commonly de- 
sired was a mitigation of protection and the estab- 
lishment of reasonable rates. Godkin, Schurz, Sum- 
ner of Yale, David A. Wells, Edward Atkinson, and 
Henry D. Lloyd taught the tariff-f or-revenue theory 
wherever they could find listeners. Wells wrote on 
" The Creed of Free Trade," in the Atlantic Monthly 
in 1875, and was sure he had found the issue of 
1876. But in neither this nor the next campaign did 
the parties face the issue. In 1880 the tariff figured 
only as a means of embarrassing Hancock, while 
Garfield did not even mention it in his inauguraL 

The forces that compelled a revision of the tariff 
in 1882-83 had to do with revenue and expendi- 
tures. Following the new prosperity the receipts 
increased beyond the ability of Congress to spend 
them. There was a small surplus in 1879. In 1880 
it was 168,000,000 ; in 1881, 1101,000,000 ; in 1882, 
$145,000,000 ; in 1883, $132,000,000. The surplus 
was a constant incentive to extravagance and deranged 
the currency. If it was allowed to remain in the 
Treasury, its millions were withheld from circulation, 
and contraction was the result ; if it was applied to 
the purchase or redemption of bonds, tibe national 
bank currency was contracted, for this was founded 
upon bonds owned by the banks; and it could not be 
spent .without the mvention of new channels. The 
temptation to increase pension payments was strength- 
ened, while public works multiplied without reason. 

The waste of money on public works induced 



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THE NEW ISSUES 117 

Arthur to advertifle the need for a reduction of the 
revenue. The annual Biver and Harbor Bill had con- 
sumed $8,900,000 in 1870, and $8,900,000 in 1880. 
In 1882 the bill waa swollen to over $18,000,000 by 
greed and log-rolling. Arthur vetoed it as unreason- 
able and unconstitutional in August, 1882. It passed 
over his veto, but the defeat of his party in tiie fol- 
lowing November was construed as a vindication of 
the President. The Bepublicans lost control of the 
House of Bepresentatives, Democratic governors were 
elected in Massachusetts and Pennsylvania, in New 
York, Connecticut, New Jersey, and Indiana, and 
critics b^^ to ask if this was the beginning of the 
end of the party. The certainty that party bills could 
not be passed in the next Congress, with the control 
divided, stimulated the Bepublicans to act while they 
could. The Civil Service Act was passed early in 
1883, and on the same day &e House took up the 
consideration of a new tariff. 

Arthur, in 1881, had urged that the revenues 
be reduced and the tariff be revised, and Congress 
had created a commission to investigate the needed 
changes, in May, 1882. This committee was in 
session throughout the foUowing summer, sitting in 
manufacturing centers aU over the East and hearing 
testimony from all varieties of manufacturers. It had 
been organized on a conservative basis, containing 
members familiar with the needs of sheep-raisers and 
wool manufacturers, and iron and sugar, as well as 
experts on administration. Its enemies thought that 
it was pledged to protection at the start. The com- 
mission expressed a belief that the country desired 



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118 THE NEW NATION 

to adhere to the general idea of protection, but it 
early learned the force of the demand for revision 
and redaction, and sent into the Hoose, in Decem- 
ber, 1882, a project for a bill intended to reduce 
the tariff at least twenty per cent. The bill based on 
this was reported from the Committee on Ways and 
Means on January 16, 1888, and was debated until 
February 20, and then abandoned in the House for 
a bill which had passed the Senate. 

The Senate Bill was in the form of an amendment 
to an Internal Bevenue Bill already before that 
house. It was passed on February 20 under the 
leadership of the young Senator from Bhode Island, 
Nelson W. Aldrich, and was sent to conference by 
the House a week later. In conference a new bill 
was substituted for the Senate Bill. This was hurried 
through both houses in time to receive the signature 
of Arthur on March 3, 1883. 

The tariff of 1883 failed to meet the demand for 
a revision. Its debates show the difficulties attendant 
upon the construction of any tariff. Congress was 
divided upon the theory of protection, both parties 
including high protectionists as well as tariff-for- 
revenue men. The revenue-producing side of the 
tariff increased the complexities, since every change 
in a rate might affect the standing of the Treasury. 
In addition to the economic and the fiscal needs, 
quite serious enough, there was the tireless influence 
of the lobby of manufacturers, pressing for single 
rates which should aid this business or that. Few 
Congressmen were sufficiently detached in interests 
to be entirely dispassionate as they framed the sched- 



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THE NEW ISSUES 119 

nles. Many did not eyen try to disguise their desire 
to promote local interests. Neither party had a manr 
date on the tariff in 1882, but when the act had bo- 
come a law it was clear that most of the Bepublican 
leaders Toted cheerfully for all the protection they 
could get, that the intent to reduce die revenue had 
foiled, and that what little hope of revision remained 
was in the opposition party. «^The kaleidoscope has 
been turned a hair's breadth," said the NatUm^ 
^and the colors transposed a little, but the compo- 
nent parts are the same." It was deliberate bad 
fiiith throughout, urged a Democratic leader, and 
^finished this magnificent shaft [of the tariff policy] 
which they had been for years erecting, and crowned 
it with the last stone by repealing the internal tax on 
playing cards and putting a twenty per cent tax upon 
the Bible." 

Throughout the tariff debate no argument had 
been used more steadily than that of the protection- 
ists that protection to labor was their aim. The de- 
gradation of ^* pauper labor" in Europe was con- 
trasted repeatedly with that prosperity that was 
typical of America. The insistence upon the argument 
revealed the desire to conciliate a class that was being 
noticed in American society for the first time. 

The great labor problem before the Civil War 
had been that of getting enough laborers and meet- 
ing the competition which the abundant free lands 
of the West had offered. Labor organizations and 
strikes had been so unusual that public opinion had 
not yet come to regard them as normal features of 
society* But the manufacturing development of the 



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POPUULTION Ain> DfMIORATIOK, 1880-1910 

(Tftble And Dia^am based upon Thirteenth Cenfiis, 1910, Fopnlatkm, 
Vol. 1, pp. 129, 180.) 





Total 
Population. 


Foreign 
and Mixed 
Parentage. 


Foreign Bom. 


1910. . . 

1900 . . 

1890 . 

1880 

1870 . . 

1860 

1860 . 




18,897,887 
16,646,017 
11/W3,675 
8,274,867 
6,824,268 


18,846,616 
10,218,817 
9,121,867 
6,669,679 
6,493,712 
4,096,763 
2,240,685 




00,000,000 



80,000,000 



70,000,000 



60,000,000 



60,000,000 



40,000^)00 



80,000,000 



20,000,000 



10,000,000 



1850 1860 1870 1880 1890 1900 1910 



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THE NEW ISSUES 121 

sixties in iron and steel, in textiles, and in other 
machine industries, threw workmen together in in- 
creasing number, taught them their interests as a 
class, and set the scene for an outbreak of strikes 
when the shops shut down or reduced wages in the 
depression of the seventies. About 1877 these strikes 
shocked society by their violence. Neither had the 
public been educated to the strike itself, nor the 
labor leaders to that moderation, without which pub- 
lic sympathy cannot be retained or strikes won. A 
feeling adverse to organized labor swept the country 
and endangered the existence of the labor movement. 

The Knights of Labor received the heaviest weight 
of disfavor. This was an industrial union, founded 
in 1869, embracing labor of all trades, and held to- 
gether by a secret organization. Dismissal so often 
followed admitted membership in a union that se- 
crecy was defensible, but secrecy mystified and fright- 
ened the public. The policy of secrecy was abandoned 
in 1882, after the excesses of the ^^ Molly Maguires" 
had brought discredit upon all organized labor. 
Under the leadership of Grand Master Workman 
Powderly the Knights carried on an open and ag- 
gressive campaign of education for labor and inspec- 
tion laws throughout the Union. The American 
Federation of Labor, founded in 1881 and reorgan- 
ized in 1886, aided in this general work, and with 
the E[nights helped to reconcile the public to the 
principle of unionism. 

State bureaus of labor appeared in many States 
as the result of the general agitation. An eight-hour 
law, for federal employees, had been gained in 1868, 



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122 THE NEW NATION 

while in 1884 a Commissioner of Labor was created 
in the Department of the Interior. Arthur was urged 
to give the post to Powderly, but selected instead 
an economist less actively identified with the propa- 
ganda, Carroll D. Wright, under whose direction 
the Bureau grew steadily in importance* Its reports 
became quarries for statistical information on the 
labor problem, and its success justified its incorpora- 
tion in the new Department of Commerce and Labor 
in 1903. 

The "Army of the Discontented," as Powderly 
called the workers, demanded education and protec- 
tive laws, and turned their attention to competition 
about 1882. The cutting of wages by peasant labor- 
ers, newly arrived in America, was a grievance as 
soon as labor became class-conscious. Opposition 
to this became virulent in the Far West, where the 
foreigner was also a Mongolian. The Chinese of the 
Pacific Slope, more frugal and industrious than 
Americans, were harried in the early eighties, and 
violence was done them in many quarters. Garfield 
had been weakened in 1880 by a forged letter seem- 
ing to show that he favored the introduction of more 
Chinese. So numerous were the persecutors that Con- 
gress responded to the demand for a Chinese Exclu- 
sion Bill, in spite of the Treaty of 1880, which 
guaranteed fair treatment. Arthur vetoed the first 
bill, but accepted a second, less stringent in its 
terms. After this victory, the labor forces turned 
upon immigration in general. 

No idea had been fixed more firmly in the Amer- 
ican mind than that the oppressed of Europe were 



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THE NEW ISSUES 128 

here to find opportunity. Immigrants had always 
been welcomed and assimilated, while Congress had, 
in 1864, organized a bureau to encourage and safe- 
guard immigration. The influx always increased in 
prosperous, and declined in adverse, years. After 
1878 the annual number broke all records. Western 
railway corporations were inviting immigrants to use 
their lands, manufacturers called them to the mills, 
and the total rose from 177,000 in 1879 to 788,000 
in 1882. This latter year was the greatest of the 
century, its newcomers attracting the attention of 
the press, of the city charities who felt their grow- 
ing responsibilities, and of the unions who felt their 
competition. Nearly all the immigrants were pro- 
ducers, a high percentage being able-bodied young 
men and women. The greatest number came from 
Great Britain, among whom the Irish settled in the 
Eastern cities. Next were the Germans, who moved 
toward Chicago or St. Louis, while the Scandi- 
navians filled up the wheat-lands of the Northwest. 

Under the demand of the labor vote. Congress 
provided, in 1882, for the inspection of immigrants 
and the deportation of undesirable aliens, and in 
1885 it forbade the importation of skilled laborers 
under contract. As yet the labor movement was 
largely aristocratic, safeguarding the skilled work- 
men, but disregarding the common laborers. 

The labor and immigration movement in its new 
aspect widened the field for economic legislation, for 
few States had factory laws, employers* liability laws, 
or laws protecting the weak, — the women and the 
children. It also complicate the situation in politics. 



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124 THE NEW NATION 

The Grermans and Scandinayians, settling in centers 
which had been strongly Unionist in the Civil War, 
were believed to absorb the doctrines of the Bepub- 
licans from their compatriots already in America. 
The Irish were generally Democrats, and the only 
Bepublican leader who had a large following among 
them was Blaine. He had fraternized with the Cali- 
fornia Irish leader, Dennis Kearney ; as Secretary 
of State he had protected naturalized Irishmen who 
went home to fight for Home Bule; some of his 
immediate family were Catholics ; and his insistence 
on an American canal won him friends who were 
already disposed to hate Great Britain. 

The votes of 1876 and 1880 showed that the two 
parties were nearly even in strength, so that any 
slight popularity or accident might decide an elec- 
tion. As politicians prepared for 1884 the attitude 
of naturalized foreigners assumed a new importance 
which the friends of the various candidates tried to 
measure. The campaign could not be fought on any 
of the old issues, but which of the new — civil serv- 
ice, tariff, or labor — was in doubt. 

BIBLIOGRAPHICAL NOTE 

The best history of ciyil service reform is C. R. Fish, The 
CivU Service and the Patronage (1905). This supplants all pre- 
▼ious acconnts, and may itself be snpplemented in detail by 
the Annual Reports of the United States Civil Service Com- 
mission (1883- ), by the Memoirs of Carl Schurz (3 vols., 
1907-08), the Writings of Carl Schurz (7 vols., Frederic Ban- 
croft, ed.f 1912), the biographies of J. R. Lowell, E. L. Godkin, 
and George William Curtis, and the files of Harper's Weekly^ 
the Nation, and the North American Review, The general nar- 



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THE NEW ISSUES 125 

rative of the eighties is oorered bj E. E. Sparks, National 
Development, and D. R. Dewey, National Problems (in 7^e Amer- 
ican Nation, toIs. 23 and 24, 1907), and £. B. Andrews, The 
United States in Our Own Time. Athoaghtfnl economic analysis 
of the period is D. A. Wells, Recent Economic Changes (1890). 
The Report of the Tariff Commission of 1882 is Taluable for the 
stndy of tariff revision, as are also the standard tariff histories 
by £. Stanwood, L M. Tarbell, and F. W. Taussig. The An- 
noal Reports of the Commissioner of Labor (1884- ) are 
fondamental for the labor problem. Useful monographs are 
C. D. Wright, An Historical Sketch of the Knights of Labor (in 
Quarterly Journal of Economics, vol. i), T. V. Powderly, Thirty 
Years of Labor (1SS9), G. E. McNeill, The Labor Movement 
(1887), and M. A. Aldrioh, The American Federation of Labor 
(in American Eoonomic Assoeiationi Economic StndieSiYoL m). 



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CHAPTER Vm 

GBOYEB OLEVELAHD 

The Administration of Chester A. Arthur proved 
that the President had never been so discreditable a 
spoilsman as the reformers had believed, or else that 
he had changed his spots. The term ended in dig- 
nity and Arthur hoped to secure a personal vindica- 
tion through renomination by his party. His struggle 
precipitated a contest of leaders, and until the nom- 
inations were made, none could say where either 
party stood. 

The independents, chiefly of Bepublican anteced- 
ents, hoped to retain what had been gained in the 
last Administration. They hoped to extend the re- 
form in the civil service and to focus attention upon 
the tarifip. The failure of downward revision in 1883 
had strengthened their hands and increased their 
hopes. They had dallied with bolting movements 
and threats so long that party regularity meant lit- 
tle to them. Either party could obtain their support 
by nominating men who could be trusted to stick to 
their platform. Arthur was not acceptable to them, 
and Blaine was anathema. 

The candidacy of Arthur was doomed to failure. 
He had alienated the Stalwarts by his independence, 
while he had failed to win the reformers because he 
had not invariably refrained from playing the poli- 



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GBOVER CLEVELAND 127 

tician. In the fall of 1882 be had interfered in the 
campaign in New York, allowing his Secretary of 
the Treasury, Charles J. Folger, while retaining that 
office, to be the Republican candidate for goTcmor. 
This had led to the belief that the patronage was 
being used for local purposes, and had stirred up an 
opposition to Folger which defeated him. Arthur's 
veto of the Chinese Exclusion Bill and the River and 
Harbor Bill further increased his unpopularity in 
various sections. He fouled to win over the Blaine 
faction, who regarded him as an intrusive accident 
and waited impatiently for the next national conven- 
tion. 

Blaine was the leader of the Republican party in 
1884, so far as it had a leader, and he possessed all 
the weaknesses of such a leader as well as personal 
weaknesses of his own. Rarely has it been possible 
to nominate or to elect one who has gained a domin- 
ant place through party struggles. Such men, Clay, 
Webster, Calhoun, and their kind, have commonly 
created enough enemies, as they have risen, to make 
them unavailable as leaders of a national ticket. 
Blaine was handicapped like these. His prolonged 
fight against Conkling and the Stalwarts created a 
breach too deep to fill, while the old questions re- 
specting his honor would not down. 

Early in 1884 Blaine was the leading candidate 
for the nomination in spite of all opposition. The 
Republican National Committee was in charge of 
men who sympathized with him. Dorsey had re- 
signed as its secretary after the star-route exposure, 
though his associate in land speculations, Stephen 



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128 THE NEW NATION 

B. Elkins, remained as one of the managers. The 
control was in the hands of men who had dose affi- 
liation with the old organization, and of the manu- 
facturers who had blocked tariff revision in 1883. 
It was improbable, in the opinion of many inde- 
pendents, that a tariff reduction could be got from 
an Administration headed by Blaine; they ques- 
tioned his sincerity upon civil service reform ; and 
they thought it not right that any man, concerning 
whose character there was a doubt, should be Presi- 
dent. They put forward, within the party. Senator 
George F. Edmunds, whom they had desired in 1880, 
and who had since become President of the Senate. 
Other candidates with local followings were General 
John A. Logan, of Illinois, John Sherman, and the 
President himself. 

The Chicago Convention of the Bepublican party, 
meeting early in June, was the scene of a battle be- 
tween the two elements in the party. At the outset, 
the old independents, headed by Curtis, and rein- 
forced by younger men like Henry Cabot Lodge, of 
Massachusetts, and Theodore Boosevelt, of New 
York, broke the slate of the National Committee and 
seated a chairman of their own choice. But the 
regulars rallied, controlled the platform, and made 
the nomination. Blaine and John A. Logan were 
selected, the former accepting the honor with secret 
misgivings, for he had a clear understanding of the 
intensity of the opposition within the party. The 
reformers went home discouraged, many of them 
determined not to let party regularity hold them to 
Blaine. 



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GBOVER CLEVELAND 129 

Out of the nomination of Blaine grew the ^^ Mug- 
wump " movement, whose influence was greater than 
that of the last bolt. The origin of the name ** Mug- 
wump " is not entirely dear, but it was well known 
as an opprobrious epithet, and was applied now by 
party regulars to the ** holier-than-thou " reformers. 
One of the regulars later quoted Bevelation at them : 
^^Thou art neither hot nor cold ... so, then, I will 
spew thee out of my mouth." They were more offen- 
sive to Bepublicans than were the Democrats, while 
the latter were bewildered but cynicaL ^ I know that 
to-day we are living in a very highly scented atmos- 
phere of political reform," said one of the Demo- 
cratic Senators a little later, ^< I know that under 
the saintly leadership of the Eatonian school of 
political philosophers we are all ceasing to be parti- 
sans, that we no longer recognize party obligations, 
party duty, party discipline, and party devoirs; 
that we are all to become reconciled to a life of 
political monasticism ; but I will continue to have 
one failing, and that is in my humble way to be as 
watchful and as vigilant of the purposes, designs, 
and craft of the Bepublican leaders as I have en- 
deavored to be in the past." 

The Mugwumps left Chicago and at once opened 
negotiations with the Democratic leaders. The Na- 
tion and the Evening Post were already with them. 
Harper^ 8 Weekly^ which had been a Union journal 
in the war, and Bepublican ever since, abandoned 
the pariy ticket. George William Curtis, its editor, 
led in the revolt, and the Mugwumps met at the 
house of one of the Harpers for organization, on 



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180 THE NEW NATION 

June 17, 1884. Their problem was whether to nom- 
inate an independent ticket and be defeated, or to 
support and help elect a Democratic President, in 
case the Democrats should be willing to cooperate 
with them. 

Not all the reformers turned from Blaine. White- 
law Beid, the successor of Horace Greeley on the 
New York IHbune, remained regular. Lodge went 
back to Massachusetts and persuaded himself to 
take part in the canvass. Boosevelt, discouraged by 
the nomination of Blaine, remained regular, but 
stepped out of the campaign and began his ranch 
life in the Far West. With him, as wilih many 
others, it was a matter of conviction that reform, 
to be effective, must be urged within the party. 
But enough of the reformers went with the Mug- 
wumps to lessen Blaine's chances of election. 

When lihe Mugwumps made overtures for fusion 
to the Democratic leaders, they had in mind as a 
candidate a young Democratic lawyer who had ap- 
peared as Mayor of Buffalo in 1881 and had been 
elected as reform Governor of New York in 1882. 
He had secured the aid of independent reformers in 
that campaign, — men who resented the candidacy 
of Folger and the intrusion of the National Admin- 
istration in local politics. As governor he had speed- 
ily established his reputation for stubborn honesty 
and independent judgment. Grover Cleveland had 
become, like Tilden, the most promising candidate 
in a party that had no admitted leader. 

The opposition from two elements in his party, at 
the Democratic Convention in Chicago, strengthened 



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GROVER CUIVELAND 181 

Cleveland as the candidate of reform. BenBntler,wlio 
had himself been nominated for the Presidency by an 
Anti-Monopoly Convention, denounced him as a foe 
of labor ; and such was Butler's reputation that his 
enmity was one of Cleveland's assets. John Kelly, 
the chief of Tammany Hall, opposed him, too, having 
learned to know him as Governor of New York. 
Well might Cleveland's friends say, " We love him 
for the enemies he has made." They nominated him 
on the second ballot, selecting Thomas A. Hen- 
dricks, of Indiana, to run with him. Their platform 
was full of reform, even of the tariff, but on the 
latter subject it was less specific than the tariff 
reformers had hoped. 

As the parties stood in 1884, personal character 
meant more than platform or party name. Cleveland 
possessed qualities that made his appeal to independ- 
ents quite as strong as it was to Democrats. With 
older brothers in the army he had supported his 
mother during the war, and had kept dear of copper* 
headism. He stood for sound money ; he believed in 
a tariff for revenue; he had proved his devotion to 
civil service reform; he lacked the factional enemies 
who weakened the candidacy of a prominent leader 
like Blaine ; and his peculiar appeal to Republican 
dissenters led the canvass away from issues into the 
field of personalities. 

The charge of the independents upon Blaine's per- 
sonal honor caused the Republican schism and drove 
the party regulars into a retort in kind. The private 
life of the candidates was uncovered to the annoy- 
ance of both and to the greater embarrassment 



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182 THE NEW NATION 

of Cleveland. Nolihing discreditable to his honesly 
could be found, but an apparent lapse in his private 
conduct gave the pretext for wild and dishonest at- 
tacks upon his character. A few years later the nov- 
elist, Paul Leicester Ford, in a keen study of New 
York politics entitled The HonorcLble Peter Stirling^ 
portrayed a situation somewhat resembling that 
of Cleveland, though disclaiming Cleveland as his 
model. The Boston Journal led in the exploitation 
of the charges, and partisans forgot decency on both 
sides. Nast, having formerly cartooned Blaine in the 
^* Bloody Shirt," now turned to ^^ A Roaring Farce 
— The Plumed Knight in a Clean Shirt," while 
others pointed out the fact that the admirer who 
coined the *^ plumed knight" epithet had been coun- 
sel for the fraudulent star-route contractors. 

Attempts were made to appeal to class hatred on 
both sides. Butler had hesitated for several weeks 
in his acceptance of the nomination by the Anti- 
Monopoly Convention. Greenbackers and a few labor 
leaders made up his following, and it was supposed 
that they would draw votes from the Democrats. 
After conference with Bepublican leaders, Butler 
agreed to run, and it was freely charged that these 
leaders financed his campaign to injure Cleveland. 
Bepublicans appealed to the Irish vote by recalling 
Blaine's vigorous diplomacy against Great Britain; 
their opponents caricatured Blaine by representing 
him as consorting with Irish thugs and dynamiters. 
At the very end of the canvass a chance remark may 
have decided the result. 

So much had been said of character in the cam- 



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6R0VER CLEVELAND 13S 

paign that both candidates brought oat the olergy 
to giye them certificates of excellence. In October a 
meeting of clergymen of all denominations was held 
at the Fifth Ayenue Hotel to greet Blaine. The old- 
est minister, Bnrchard by name, was asked to deliver 
the address, and while he spoke Blaine thought of 
other matters. He thus missed a phrase which other 
hearers caught and which the Democrats immedi- 
ately advertised. It denounced the Democrats as ad- 
herents of ^^rum, Bomanism, and rebellion,'' and 
was reported as conveying a gratuitous insult to the 
Irish vote. How many Irish turned from Blaine to 
Cleveland in the last week of the campaign cannot 
be said, but the election was so dose that a few votes, 
swung either way, could have determined it. Cleve- 
land carried New York and won a majority of the 
electoral college, but his popular plurality over Blaine 
was only 28,000, while he had some 800,000 fewer 
than his combined rivals. Butler drew 175,000 votes 
without defeating Cleveland. Purists,' disgusted with 
the personalities of the campaign, swelled the Pro- 
hibition vote to 150,000. 

On March 4, 1885, Grover Cleveland was inau- 
gurated as the first Democrat elected President 
since James Buchanan. His Cabinet was necessarily 
filled with men inexperienced in national adminis- 
tration, for the party had been proscribed for six 
terms. The greatest attention was attracted by the 
two former Confederates, Grarland and Lamar, whose 
career did much to disprove the ** gloomy and base- 
less superstition " of twenty years, ** that one half of 
the nation had become the irreconcilable enemies 



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1S4 THE NEW NATION 

of the national unity and the national will." It was 
an American Administration, and of its chief, James 
Bussell Lowell, who had known men in many lands, 
wrote, ^^ He is a truly American lype of ^e best 
kind — a type very dear to me, I confess." 

The State Department was entrusted to Thomas 
F. Bayard, who had been a competitor for the nom- 
ination in 1884, and who sustained the tradition that 
only first-rate men shall fill this office. Bayard ^kv 
ceeded at once to undo the work of the last fiye 
years and to reverse a policy of Blaine. A treaty 
with Nicaragua, negotiated by Frelinghuysen in De- 
cember, 1884, ran counter to the Engliidi treaty of 
1850. After a vain attempt to persuade Great Britain 
to abandon the Clayton-Bnlwer Treaty respecting 
an isthmian canal, Frelinghuysen had disregarded it 
and acquired a complete right-of-way from Nicaragua. 
This was pending in the Senate when Cleveland was 
inaugurated, and was withdrawn at once. The United 
States reverted to the old Whig policy of a neutral- 
ized canal. 

In all departments the new Administration was 
forced to test the strength of its convictions upon 
civil service reform. During its long years of oppo- 
sition the party had often voiced a demand for re- 
form, but now in office its workers demanded the 
usual rewards of success. Cleveland had fought the 
spoils politicians in New York, and had taken coimsel 
of Carl Schurz after his election as President. In the 
next four years he nearly doubled the number in 
the classified service in the face of opposition from 
his most intimate associates. 



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GBOYEB CLEVELAND 135 

The problems of prosperity and national growth, 
developing in the eighties and culminating between 
1885 and 1889, involyed administrative efficiency 
rather than party policy. On every side the Govern- 
ment was forced to expand its activities, and Cleve- 
land was occupied in getting new machinery into 
operation and meeting conditions for which no pre- 
cedents existed. 

Organized labor had gained concessions from Con- 
gress in a Bureau of Labor, in 1884, and an Anti- 
Contract Labor Law in 1885. These called for sym- 
pathetic administration and encouraged labor to hope 
for more. During 1886 and 1887 the views of l^bor 
leaders attracted much attention because of a series 
of strikes and riots. In the greatest of these the 
local chapters of the Knights of Labor fought against 
the Gbuld railways of the Southwest — the Missouri 
Pacific and the Texas Pacific. The strike originated 
in March, 1886, in sympathy with labor organizers 
who had been discharged by the railroad. Under the 
leadership of Martin Lrons it spread over the South- 
west, causing distress in those regions which were 
dependent upon the railroad for fuel and food and 
causing disorder in the towns where the idle work- 
men congr^ated. Powderly and the other chief 
officials of the Knights tried to stop the strike, but 
were ineffective, while the railroad managers shaped 
events so as to divert the sympathies of the Western 
people against the strikers. The Eiiights never re- 
covered from the blow which the loss of the strike 
inflicted upon them. 

In May, 1886, a general demonstration in favor 



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1S6 THE NEW NATION 

of the eight-hour day was planned and carried out. 
In Milwaukee riots ensued, the militia was called 
out by Groyemor Busk, and a volley was fired into 
the mob. In Chicago the union movement was com- 
bined with anarchy and socialism, and opponents of 
all did not discriminate among them. A meeting of 
the anarchists was broken up by the police, several 
of whom were killed by the explosion of a bomb 
thrown in the tumult. In 1887 a group of the an- 
archist leaders were hanged, having been convicted 
of what may be called constructive conspiracy. The 
imrest revealed by the strikes and riots showed that 
the old period of uniform well-being and satisfaction 
was over. 

The demands made upon politics by organized 
labor were exceeded by the demands of organized 
patriotism. The veterans of the Civil War, who 
were in early manhood in 1865, were now in middle 
life, were possessed of political influence, and turned 
to the National Government for personal advantage* 
Advocates of protection acted upon the theory that 
for national purposes special advantages ought to be 
given to manufacturers. The same idea of govern- 
ment readily bestowed these advantages in return 
for a past service. 

The machinery of the veterans was the Grand 
Army of the Republic, which, from being an unim- 
portant, reminiscent league, had grown to be an in- 
strument for the procuring of pensions. The surplus 
tempted citizens to make demands upon it ; the num- 
ber of soldier votes encouraged politicians to comply 
with the demands. In 1879 the movement began 



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GBOVEB CLEVELAND 187 

\ni3i an Arrears of Pensions Act, by which pension- 
ers were entitled to back pay from their mustering- 
oat dates, regardless of the period at which their in- 
capacity set in. The next step involyedthe issuing of 
pensions for incapaciiy and dependence, regardless of 
their cause, and opened the way for pensions for serv- 
ice only. In 1887 Cleyeland yetoed a pension bill of 
this character, and prevented its passage until the term 
of his successor, in 1890. He had already offended 
many of his supporters by guarding the offices; his 
pension veto offended more by checking the attack 
of the old soldiers on the Treasury. No one opposed 
the granting of pensions to soldiers who had been 
injured in the Civil War, but the demands of the 
leaders of the Grand Army, supported by the inter- 
ests of hundreds of attorneys who lived on pension 
obims, now assumed the appearance of an organized 
raid on the Treasury. The general laws were sup- 
plemented by special private pension laws, of which 
1871 were sent to Cleveland in four years. He 
vetoed 228 of these, often to his political injury. In 
many caaes these made allowances to persons whose 
daims had been rejected by the Pension Bureau as 
inadequate or fraudulent. In the course of time 
Oevehmd became ^ thoroughly tired of disapprov- 
ing gifts of public money to individuals who in my 
view have no right or claim to the same/' The pen- 
sion fund, he maintained, was ^ the soldiers' fund," 
and should be distributed so as to ^' exclude perver- 
sion as well as to insure a liberal and generous ap- 
plication of grateful and benevolent designs." In 
the ten years ending in 1889, Congress spent 



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1S8 THE NEW NATION 

8644,000,000 on pensions ; in the next ten it spent 
#1,860,000,000. 

The surplus incited extravagance, and its reduc- 
tion had been demanded on this ground, the tariff 
appearing to afford the best method of reduction. 
When the Democratic party gained control of the 
House, in 1888, it proceeded at once to discuss re- 
vision, and promptly uncovered a difference of opin- 
ion among its members. The last Democratic Speaker 
of the House had been Samuel J. Randall, of Penn- 
sylvania, a Democrat who had been trained in the 
philosophy of Henry Clay and in the interests of a 
great manufacturing State. He was by conviction 
and association a protectionist, and was a candidate 
for his party's nomination as Speaker in the Forty- 
eighth Congress, which met in December, 1888. 
From this date he ceased to lead his party in the 
House and became the leader of an internal faction. 
John G. Carlisle, of Kentucky, supplanted him, was 
elected Speaker, and organized the House in the in- 
terest of a tariff for revenue only. For the next six 
years the Democratic organization of the House was 
pledged to revision, but operated in the face of a 
growing Republican opposition, and with Randall 
and the protectionist Democrats attacking from the 
rear. 

The election of Cleveland gave the Democrats 
control of two branches of the GK>vemment, but left 
the Senate in the hands of the Republicans. It was 
vain to talk of serious revision or any other party 
measure in a divided administration, yet the Presi- 
dent chafed under his inability to fulfill parly pledges. 



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GROVER CLEVELAND 139 

The surplus continued to accumulate, to permit ex- 
travagance in Congress, and to arouse the cupidity 
of citizens. Li his message to his second Congress, 
in 1887, Cleveland startled the country by devoting 
his undivided attention to this single topic. He set 
his party a text which could not be evaded, although 
there was even yet no reason to believe that a tariff 
bill could pass both houses. He had taken Carlisle 
into his confidence before sending the message ; the 
latter entrusted the leadership in revision to Eoger 
Q. Mills, of Texas, a free-trader, whom he appointed 
as chairman of the Committee on Ways and Means. 
With the opening of the debate on the Mills Bill, 
in April, 1888, there began ^*- the first serious attempt 
since the war to reduce toward a peace basis the 
customs duties imposed during that conflict almost 
solely for purposes of revenue.*' Mills and William 
L. Wilson, who had been a college president in 
West Virginia, bore the burden of advocacy of a 
reduction of the revenue to the extent of ^0,000,000. 
They were opposed by a united Republican party, 
both frightened and gratified because the issue had 
been made so dear. It was charged that the Com- 
mittee on Ways and Means had drawn up the bill 
in secrecy, and that a majority of its Democratic 
members were Southerners who knew nothing of the 
needs of manufactures. The danger to American 
labor from the competition of the pauper labor of 
Europe was urged against it. It was asserted to be 
a pro-British measure, and stories were circulated of 
British gold, coming from the Cobden Club, a free- 
trade organization, to subvert American institutions. 



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140 THE NEW NATION 

The Democratic organization droye the bill throngh 
the House of Bepresentatives in spite of all resist- 
ance. In the Senate, with the Republicans in con- 
trol, the bill neyer came to a Yote, and was used to 
manufacture campaign materials for the campaign 
then pending. Many of the advisers of Cleyeland 
had urged him to withhold the tariff message, lest 
he arouse the enemy and defeat himself, but he had 
risked personal and party defeat in order to get an 
issue definitively accepted — the first issue so ac- 
cepted in politics since 1864. 

The Mills Bill fiasco was the most important 
party measure of Cleveland's Administration, yet it 
served only to accentuate the difficulties in tariff 
legislation which had been experienced in 1883, and 
to provide an issue for the campaign of 1888. The 
laws that were passed between 1885 and 1889 were 
generally non-partisan in their character and were 
of most influence when they helped to readjust fed- 
eral law to national economic problems. The Federal 
Government was unfolding and testing powers that 
had existed since the adoption of the Constitution, 
but had not been needed hitherto in an agricultural 
republic. The change that forced the resort to these 
powers came largely from the completion of a na- 
tional system of communication. 

BIBLIOGRAPHICAL NOTE 

For the election of 1884, consult, in addition to Stanwood, 
J. F. Rhodes, ** The National Republican Conventions of 1880 
and 1884 " (ScrUmer^s Magazine, September, 1911), and ** Cleve- 
land's Administiations '' {Scribner*8 Magazine^ October, 1911). 



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GROVEB CLEVELAND 141 

There is an annotated reprint of the ** Malligan Letters " in 
Harper's Weddy (1884, pp. 643^16). The biographies of Blaine 
by Hamilton and Stanwood should be examined, as well as the 
sketches of Cleveland (who left few literary remains), by J. L. 
Williams, G. F. Parker, and B. W. Gilder. Among partisan 
party histories, the best are F. Curtis, The Republican Party, 
(2 vols., 1904), and W. L. Wilson, The NatianalDemocratie 
Party (1888). J. H. Harper lecoants details of the Mugwump 
split in his history of The House of Harper (1912). The stand- 
s' compilation on the pension system, which has not yet re- 
eeived adequate treatment, is W. H. Glasson, MUitary PensioH 
LegislaHon in the United States (in Columbia Uniyersity Stud- 
ies, ToL zn). C. F. Adams and W. B. Hale published useful 
essays on the pension system in World's Work, 1911, H. T. 
Peck begins his popular Twenty Years of the Republic (1907) 
with the inauguration of Cleveland in 1885. Consult also 
Sparks, Dewey, Andrews, and the Annual Cydopasdia. 



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CHAPTER IX 

THE LAST OF THE FBONTIEB 

Five statutes that reoeiyed the signature of Groyer 
Clevebuid are documentary proof of the new prob- 
lems and the changing attitude of the National Ad- 
ministration during the eighties. They indicate that 
the chief function of the National GK>yernment had 
ceased to be to moderate among a group of self- 
sufficient States and had come to be the direction of 
such interests as were national in importance or ex- 
tent. On February 4, 1887, the Interstate Com- 
merce Law was passed in recognition of a transpor- 
tation system that had become national; and four 
days later the Dawes Bill, providing that lands 
should be issued to Indians in severalty, marked the 
disappearance of the wild Indian from the border. 
In 1889 a Department of Agriculture, with a seat 
in the Cabinet, and a law for the survey of irriga- 
tion sites in the Far West, mark the interest of a 
nation in the prosperity of its whole area and popu- 
lation; while laws of 1889 and 1890 admitting six 
new States extended the chain of commonwealths 
for the first time from ocean to ocean. A process 
that had been under way since Jamestown and 
Plymouth Bock had culminated in the occupation of 
the whole breadth of the continent. 

The first continental railroad, the Union Pacific, 



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THE LAST OF THE FRONTIER 148 

chartered in 1862 and finished in 1869, was ad- 
mittedly a national project. Its purpose was to bind 
the Pacific Slope to the East in a period when sees 
tionalism was a menace to national unity. Its open- 
ing was the first step in the completion of an intri- 
cate system of lines extending to the Pacific. Direct 
f edenJ aid was given to the road in the form of land 
grants, right of way, and a loan of bonds. 

Other continental railroads were authorized in the 
later sixties. In 1864 a Northern Pacific, to con- 
nect Lake Superior and Puget Sound, made its 
appearance. In 1866 the Atlantic & Pacific was 
given the right to run from a southwestern terminal 
at Springfield, Missouri, to southern California. In 
1871 the Texas Pacific was designed to connect the 
head of navigation on the Bed Biver, near Shreve- 
port and Texarkana, with Fort Yuma and San 
Diego. Additional lines with continental possibili- 
ties received charters from the Western States, — 
the Denver & Rio Grande, the Chicago, Burling^n 
& Qnincy, and the Atchison, Topeka & Santa F^, — 
and received indirectly a share of the public domain 
as an inducement to build. Congress stopped mak- 
ing land grants for this purpose in 1871, but not 
until more lines than could be used for twenty years 
had been allowed. 

All the continental railways were beg^ before 
1878, were checked by the five years of depression, 
and were revived about 1878. When they began 
again to build there was associated with them a new 
project for an old continental route. 

The interoceanio canal had been foreseen ever 



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144 THE NEW NATION 

since the first white man stood on the Isthmus and 
gazed at the Pacific. Its construction had been 
stimulated by the gold discoveries and the California 
emigration of 1848-49, and had been arranged for 
in a treaty signed with Grreat Britain in I860. No 
means to build the canal were found, howeyer, and 
the project drifted along imtil De Lesseps finished 
his canal at Suez, and the new interest in continental 
communication in America resuscitated the canal at 
Panama. In 1878 a French company, with De Lefr- 
seps at its head, obtained a concession irom Colom- 
bia. It began work in 1880, at once arousing the 
jealousy of the United States which was shown in 
the efforts of Hayes, Garfield, and Arthur to abro- 
gate the Clayton-Bulwer Treaty and procure for 
the United States a free hand at the Isthmus. Cleye- 
land reverted to the policy of a neutralized canal in 
1885, but interest on either side was premature, 
since no canal was built for thirty years. 

The continental railways aroused keen interest in 
problems of transportation by their completion be- 
tween 1881 and 1885. The Northern Pacific was 
finished under the direction of Henry Yillard, a Ger- 
man journalist who had been a correspondent in the 
Civil War and had managed the interests of foreign 
investors after 1878. He gained control of the partly 
finished Northern Pacific and the local lines of Ore- 
gon through a holding company known as the Oregon 
& Transcontinental. In September, 1883, he took a 
special train, full of distinguished visitors, over his 
lines to witness the driving of the last spike near 
Helena, Montana. On the way out, they stopped at 



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THE LAST OF THE FBONTIEB 145 

Bismarck to help lay the corner-stone for an am- 
bitious new capitol of the Territory of Dakota. From 
Duluth to Tacoma the new line brought in immi- 
grants whose freight made its chief business. 

South of the Northern Pacific, the original main 
line of the Union Pacific ran from Omaha up the 
Platte Trail through Cheyenne to Ogden, with a 
branch from Kansas City to Denver and Cheyenne. 
Between the main line and the branch the Chicago, 
Burlington & Quincy constructed a road that reached 
Denyer in May, 1882. Here it met, in 1883, the 
Denyer & Bio Grande, a narrow-gauge road that 
penetrated the divide by way of the canon of the Ar- 
kansas Biyer, and extended to the Gbeat Salt Lake. 
The two roads together offered a competition to the 
Union Pacific for its whole length from the Missouri 
Biyer to Ogden, and drove that road to extend 
feeder branches south to the Gxdf and north into 
Oregon. 

Farther south the Atchison, Topeka & Santa FS 
stretched the whole length of Kansas and followed 
the old trail to Santa F^ and the Bio Grande, and 
thence to Old Mexico. Its owners cooperated with 
the owners of the Atlantic & Pacific franchise, and 
the Southern Pacific of California, to build a con- 
necting link between the Atchison, Topeka & Santa 
F^ at Albuquerque and the Colorado Biver at the 
Needles. From this point the Southern Padfic trav- 
ersed the valleys of California. Li October, 1888, 
trains were running from San Francisco to St. Louis 
over this road. 

The Southern Pacific of California met the other 



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^» OAVAOA 




' By 1870 the ndlway net had covered the eastern half of the United 
(States and had Just began its Pacific extension. There were 62,914 
miles of railroad. 

THX: WBSTBBN BACLBOAI>S AND THB 

(Based upon the maps showing density of popolation in the Bleyenth 

Band-McNally OlBcial BaU. 



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By 1890 the railway mileage of the United States had increased to 
l€&JSd7f extending the railway net over the whole trana-Missonri region, 
and reinforced by lines in Canada and Mexico. 

CONTCCBNTAI. FBONTISB* 1870-1890 

Census, and npon Appleton's Railway Guidei Noyemheri 1871, and the 
way Guide, Angast, 1891.) 



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148 THE NEW NATION 

continental lines at the Fort Yuma crossing of the 
Colorado Biver. The Texas Pacific had got only to 
Fort Worth before the panic of 1878. It now built 
across Texas toward El Paso. Subsidiary corpora- 
tions owned by the Southern Pacific men built the 
line between El Paso and Fort Yuma, and enabled a 
through service to start to St. Louis in January, and 
to New Orleans in October, 1882. Yet another 
Southern Pacific line was opened through San An- 
tonio and Houston, tapping the commerce of the Gulf 
shore, and running trains to New Orleans in Feb- 
ruary, 1888. 

The opening of great lines in the United States in 
the early eighties was part of a similar movement 
throughout the world. In Canada, Sir Donald Smith, 
later raised to the peerage as Lord Strathcona, was 
be^nning the Canadian Pacific from Port Arthur to 
Vancouver, while on the Continent of Europe the 
first train of the "Orient Express" left Paris for 
Constantinople in June, 1883. In November, 1888, 
the American railroads, realizing that they were a 
national system, agreed upon a scheme of standard 
time by which to run their trains. Heretofore every 
road had followed what local time it chose, to the 
confusion o'f the traveling public. 

Most of the continental railways had extensive 
land grants, of from twenty to forty sections per 
mile of track, but whether they had lands to sell or 
not they were vitally interested in the settlement of 
the regions through which they ran. Each encouraged 
immigration and colonization. Their literature, scat- 
tered over Europe, was one factor in the heavy drift 



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THE LAST OP THE FRONTIER 149 

of population that started after 1878. Six new West- 
em States were created in the ten years after their 
completion. 

The youngest American Territory in the eighties 
was Wyoming, created in 1868, and the youngest 
State was Colorado, admitted in 1876. After Colo- 
rado, the political division of the West embraced eight 
organized Territories : Dakota, Montana, Idaho, and 
Washington along the Canadian line, Wyoming and 
Utah in the middle, Arizona and New Mexico on the 
Mexican border. Besides these Territories there was 
the imorganized remnant of the Indian country known 
as Indian Territory, and attracting the covetous 
glances of frontiersmen in all the near-by Western 
States. 

Agriculture was the main reliance of the wave of 
pioneers that poured over the plains along the lines 
of the railroads. In the valley of the Red River of 
the North, wheat-farming was their staple industry. 
As the Old South had devoted itself to the staple 
crop of cotton, so this new region took up the single 
crop of wheat, bringing to its cultivation great ma- 
chines, white labor, and a modified factory system. 
South of the wheat country, com dominated in Kan- 
sas, Iowa, and Nebraska, and went to market either 
as grain or in the converted form of hogs or stock. 
In Texas the cotton-fields pushed into new areas. The 
farm lands completely surrounded the Indian Terri- 
tory, in which a diversified agriculture was known to 
be both possible and profitable. 

Across the United States, from Canada to Mexico, 
the advance line of farms pushed from the well- 



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150 THE NEW NATION 

watered bottoms of the Mississippi Valley into the 
plains that rise toward the Kocky Mountains. Near 
the ninety-seventh meridian the rainfall of this re- 
gion becomes insufficient for general farming in 
ordinary years. But the solicitations of land-sellers 
brought settlers into the subhumid region, while for 
a few years in the eighties the rainfall was greater 
than the average. Permanent climatic changes were 
imagined by the hopeful. A Governor of Kansas 
stated, in 1886, *^with absolute certainty, that great 
areas in the Western third of Kansas are becoming 
more fertile," while an Eastern Senator, who was 
generally well informed, believed in 1888 that ^^ the 
whole Territory of Dakota is as capable of sustaining 
population as Iowa." 

Between the farming frontier and the mountains 
the cattlemen expanded the grazing industry, with 
profits that were enlarged because of the markets 
that the railroads brought them. The "long drive " 
from Texas to Montana became a familiar idea on 
the border, while the cowboys in their lonely watches 
developed a folk-song literature that is typically 
American. Between the cattlemen and the sheep- 
men there was permanent war, for the sheep injured 
the grass they grazed over. Although both industries 
were trespassers on the public lands the herders re- 
sented the appearance of the flocks as an intrusion 
upon their domain. 

Kansas City rose suddenly to prominence as the 
meeting-place of the railways of the West and South- 
west with those of the East. Near to the line that 
divided steady agriculture from the nomadic life of 



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THE LAST OP THE FRONTIER 151 

the plains it became a oonyenient market for both. 
Here the packers developed the traffic in fresh beef 
that the new railways with their refrigerator cars 
made possible. The cities of the East, in need 
of more fresh meat than the local farmers could 
provide, found their supply on the plains of the Far 
West. 

Beyond the plains, the mountain regions changed 
less from the advent of the railways than any other 
section of the remote West. They had attracted 
population to their camps during the Civil War, and 
now they grew in size and permanence. But only 
such regions reached permanent importance as had 
valleys to be irrigated and fields to be cultivated. 
Without agriculture no important region has flour- 
ished in the West. 

Toward the end of the eighties the pressure of the 
population for more homestead lands brought about 
the opening of Oklahoma. Here, for over half a cen- 
tury, the Indian tribes had lived in full possession. 
After the Civil War the plains tribes had been col- 
onized here too. Now, as the lands were awarded to 
the Indians in severalty under the Dawes Act, the 
old tribal holdings were surrendered and large areas 
were offered to white settlement. After ten years of 
ejectment and restraint the Oklahoma boomers were 
let into the country in 1889. Guthrie and Oklahoma 
City were created overnight, and in 1890 the Terri- 
tory of Oklahoma received permanent organization. 

Before the last continental railway was finished, 
the Territories were asking for statehood and were 
showing advance in population to justify it. When 



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158 THE NEW NATION 

Yillard aided in the corner-stone laying at Bismarck 
in 1883 there were already three clearly defined 
groups of population in Dakota and an ultimate 
division had been determined upon by the settlers. 
Bepeatedly, in the decade, the Dakota colonists 
framed constitutions and signed petitions, and the 
Republicans in Congress sought to give them state- 
hood. The Democratic House, which prevailed from 
1888 to 1889, saw no reason for creating more B^ 
publican States, as these would likely be, and found 
pretexts for holding up the bills. Montana, less ad- 
vanced than Dakota, and Idaho and Wyoming which 
were yet more primitive, joined the forces of the 
statehood advocates. Arizona and New Mexico did 
the same, and Utah had been a suitor since 1850. 
Washington, with a growing population on Puget 
Sound and in the Spokane country, was obviously 
not long to be denied. 

For party purposes, the Democrat's resisted the 
demands for statehood until the election of 1888 
insured Bepublican control through every branch of 
the United States Government. Thereafter there 
was no point to resistance, and Cleveland, in 1889, 
signed an ^^ omnibus " bill under which North Dakota, 
South Dakota, Montana, and Washington were ad- 
mitted. Idaho and Wyoming, defeated at this time, 
were let in by the Republicans in 1890. The un- 
organized frontier was now all but gone, and the 
pioneers of these new States used PuUman cars and 
read the monthly magazines like any other citizens. 

Arizona and New Mexico were excluded from the 
new States of 1889 and 1890 because a Republican 



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154 . THE NEW NATION 

Congress expected them to be Democratic, and both 
remained Territories for more than twenty succeed- 
ing years. Utah, with ample population, was kept 
where the Federal Government could control it be- 
cause of the practices taught by its Church. The 
Mormons had made a prosperous Territory in Utah 
by 1850. They had flourished ever since, but their 
institution of polygamy frightened the United States 
and created permanent hostility to their admission. 
In 1882 the Territory was placed under a commis- 
sion, and thereafter polygamous citizens were brought 
to punishment. In 1890 the Church gave up the 
fight and formally abandoned the obnoxious doctrine, 
but the surrender came too late to accomplish admis- 
sion at this time. 

By 1890 the good agricultural lands of the United 
States were nearly all in private hands. Their oc- 
cupation had been hastened in the last five years by 
facility of access and the efforts of the railways. 
With the disappearance of free lands a new period 
in America began, as was recognized at the time, 
and has become clearer ever since. 

Out of forty-eight States comprising the United 
States in 1912, and including about 1,902,000,000 
acres, twenty-nine with 1,442,000,000 acres had been 
erected in the public domain to which Congress had 
once owned title. By cession, purchase, or conquest 
this domain had been acquired between 1781 and 
1858 ; it had been treated as a national asset and 
governed with what efficiency Congress possessed. 
By 1903 the United States had transferred to in- 
dividuals about half its public land and nearly all 



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THE LAST OP THE FRONTIER 155 

its farm land. It retained many millions of acres, 
bat these were mountain or desert, and were not 
usable by the individual farmer who had been the 
typical unit in the occupation of the West. 

Already, by 1880, the statisticians had recognized 
that the period of free land was at an end, and had 
turned their attention to the abuses which had arisen 
in the administration of the estate. From the begin- 
ning, it had been difficult to compel the West to 
respect national land laws. The squatter who oc- 
cupied lands without title had always been an obsta- 
cle to uniform administration. Evasion of the law 
had rarely been frowned upon by Western opinion, 
which had hoped to get the public lands into private 
hands by the quickest route. In the region where 
the laws had to be enforced, opinion prevented it, 
while the National Administration, before the adop- 
tion of civil service reform, was incapable of direct- 
ing with accuracy and uniform policy any adminis- 
trative scheme which must be so highly technical as 
a land office. The Preemption, Homestead, and 
Timber Culture Laws were all framed in the interest 
of the small holder, but were all perverted by fraud 
and collusion. The United States invited much of 
the fraud by making no provision by which those 
industries which had a valid need for a large acre- 
age could get it legally. 

Among the special abuses that were observed now 
that it was too late to remedy them were the viola- 
tions of the law and the lawless seizures of the pub- 
lic lands. The cattle companies took and fenced what 
they needed and drov^ put ^^trespassers" by force. 



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156 THE NEW NATION 

Mail contractors complained of illegal indosures 
which they dare not cross, but which diverted the 
United States mail from its lawful course. Yet such 
was the general land law that against all but the 
United States Government the possessors could 
maintain their possession. If the Government could 
not or would not interfere, there was no redress. 

These abuses had been noticed for many years, 
and were specially advertised in the early eighties by 
the enormous holdings of a few British noblemen. 
The problem of absentee landlordism was exciting 
Ireland in these years. When Cleveland became 
President his Commissioner of the General Land 
Office, Sparks, turned cheerfully and vigorously to 
reform, and denounced the discreditable condition 
the more readily because it had appeared under 
Republican administration. -He held up the granting 
of homestead and preemption titles for the purpose 
of examination and inspection, and demanded the 
repeal of the Preemption Law. He was successful 
in recovering some of the lands that had been offered 
to the railways to aid in their construction. 

The railway land grants were notorious because 
the railways had rarely been done on contract time, 
and had in theory forfeited their grants. The esti- 
mated area offered them was about 214,000,000 
acres, and the question arose as to the extent to 
which forfeiture should be imposed upon them. The 
spectacular completion of their lines and their efforts 
to bring a population into the West, and the vast 
size of the corporations that owned them, had aroused 
a hostile opinion that supported the Democratic 



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THE LAST OP THE FRONTIER 157 

Administration in its efforts to save what lands it 
could. Some fifty million acres were restored to the 
domain by this fight, but the restoration only em- 
phasized tiie fact that most of the good lands were 
gone. 

Out of the demand for the reform of the public 
lands grew a new interest in the condition of the 
lands that were left. The Department of Agri- 
culture was created at the end of Gleveland's term, 
and Grovemor Jeremiah Rusk was appointed as its 
first Secretary by Harrison. Rusk accepted cheer- 
fully his place as *< the tail of the Cabinet," asserting 
that as such he was expected <* to keep the flies off," 
and set about rearranging or organizing a group of 
scientific bureaus. Since most of the remaining 
lands could not be used without irrigation, the sur- 
veys undertaken by Congress started a new phase 
of public science, and led ultimately to the rise of a 
positive theory of conservation. 
^' The problems of national communication. Western 
settlement, and public lands resulted from the com- 
pletion of the continental railways, while the rail- 
ways themselves gave a new significance to trans- 
portation in America. During the years of the 
Ghranger movement the doctrine had been estab- 
lished that railroads are quasi-public and are subject 
to regulation by public authority. In the Grranger 
Cases in 1877 the Supreme Court recognized the 
right of the States to establish rates by law, even 
when these rates, by becoming part of a through 
rate, had an incidental effect upon interstate com- 
merce. The problem had been viewed as local or 



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158 THE NEW NATION 

regional during the seventies. Most of the States had 
passed railway laws and had proceeded to accumu- 
late a volume of statistical information upon the 
railway business, that was increased by such public 
investigations as the Wiudom and Hepburn Re- 
ports and by lawsuits that revealed the nature of 
special favors and rebates. 

Before the States had gone far in the direction 
of railway regulation it was discovered that no 
State could regulate an interstate railway with pre- 
cision and justice. The great systems built up by 
Yillard and Gould and Yanderbilt and Huntington 
dominated whole regions and precipitated the ques- 
tion of the effectiveness of state action. The conti- 
nental lines, necessarily long and traversing several 
States, emphasized the inequality between the pow- 
ers of a State and the problem to be met. Their 
national character pointed to national control. 

In Congress there were repeated attempts after 
1873 to secure the passage of an Interstate Com- 
merce Act. In continuation of this campaign a com- 
mittee headed by Senator Shelby M. Cullom, of 
Illinois, made a new investigation in 1885, and 
reported early in 1886 that supervision and pub- 
licity were required, and that these could best be 
obtained through a federal commission with large 
powers of taking testimony and examining books. 
The committee was convinced, as the public was al- 
ready convinced, that the problem had become na- 
tional. 

The Supreme Court reached the same opinion in 
1886 when it handed down a new decision in the 



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THE LAST OP THE FRONTIER 159 

case of the Wabash Railway Company vs. Illinois. 
Here it reversed or modified its own decision in the 
Granger Cases. In 1877 it had ruled that railways 
are subject to regulation and that the States under 
their police powers may regulate. It now adhered to 
its major premise, but declared that such regulation 
as affected an interstate rate is exclusively a fed- 
eral function. In effect it determined that if there 
was to be regulation of the great systems it could 
only be at the hands of Congress. 

The regulation of interstate commerce was not 
a parly measure. It had its advocates in both par- 
ties, and found its opponents in the railroad lobby 
that resented any public interference with the busi- 
ness of the roads. The railway owners and directors 
were slower than the public in accepting the doctrine 
of the quasi-public nature of their business. It was a 
powerful argument against them that their size and 
influence were such that they could and did ruin or 
enrich individual customers, and that they could 
make or destroy whole re^ons of the West. Enough 
positive proof of favoritism existed to give point to 
the demand that the business must cease to dis- 
criminate. 

The Interstate Commerce Act became a law Feb- 
ruary 4, 1887. It created a commission of five, with 
a six-year term and the proviso that not more than 
three of the commissioners should belong to one 
party. It forbade a group of practices which had 
resulted in unfair discrimination and gave to the 
commission considerable powers in investigation and 
interference. The later interpretation of the law de- 



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IflO THE NEW NATION 

prived the oommission of some of the powers that, it 
was thought, had been given to it, but during the 
next nineteen years the Interstate Commerce Com- 
mission was a central figure in the solution of the 
railroad problem. The work of this commission, like 
the work of irrigation and agriculture, was technical, 
calling for expert service, and aiding in the process 
that was changing the character of the National Ad- 
ministration as one function after another was called 
into service for the first time, 

BIBLIOGRAPHICAL NOTE 

In 1893 F. J. Tamer called attention to the Significance of 
the Frontier in American History (in American Historical Ajb- 
sociation, Annual Report, 18d3). His theory has been elabo- 
rated by F. L. Paxson, The Last American Frontier (1910X 
and K. Coman, Economic Beginnings of the Far West (1912). 
There is no good account of the public lands. T. Donaldson, 
The PubUc Domain (1881), is inaccurate, antiquated, and 
clumsy, but has not been supplanted. Many useful tables are 
in the report of the Public Lands Commission created by 
President Roosevelt (in 58th Congress, 3d session, Senate 
Document, No. 189, Serial No. 4766). The general spirit of 
the frontier in the eighties has been appreciated by Owen 
Wister, in The Virginian (1902), and Members of the Family 
(1911), and by E. Talbot, in My People of the Plains (1906). 
J. A. Lomaz has preserved some of its folklore in Cowboy 
Songs and Other Frontier Ballads (1910). The best narratives 
on the continental railways are J. P. Davis, Union Pacific Rail- 
way (1894), and E. V. Smalley, The Northern Pacific Railroad 
(1883). Many contributory details are in H. Yillard, Memoirs 
(2 vols., 1904), E. P. Oberholtzer, Jay Cooke (2 vols., 1907), 
and in the appropriate volumes of H. H. Bancroft, Works. 
L. H. Haney has compiled the formal documents in his Con- 
gressional History of Railroads (in Bulletins of the University 
of Wisconsin, Nos. 211 and 342). The debate over the Isth- 
mian Canal may be read in J. D. Richardson, Messages and 



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THE LAST OF THE FRONTIER 161 

Papers of the Presidents; the Foreign Relations Beports, 1879- 
83 ; L. M. Keasbey, The Nicaragua Canal and the Monroe 
Doctrine (1896) ; J. B. Henderson, American Diplomatic Ques- 
tions (1901) ; and J. Latan^, Diplomatic Relations of the United 
States and Spanish America (1900). 



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CHAPTER X 

NATIONAL BUSINESS 

Transportation was a fundamental factor in the 
two greatest problems of the eighties. In the case of 
the disappearance of free land and the frontier, it 
produced phenomena that were most clearly visible 
in the West, although affecting the whole United 
States. In the case of concentration of capital and 
the growth of trusts, its phenomena were mostly in 
the East, where were to be found the accumulations 
of capital, the great markets, and the supply of labor. 

Through the improvements in communication it 
became possible to conduct an efficient business in 
every State and direct it from a single head office. 
Not only railroad and telegraph helped in this, but 
telephone, typewriter, the improved processes in 
photography and printing, and the organization of 
express service were of importance and touched 
every aspect of life. Journalism both broadened 
and concentrated. The effective range of the week- 
lies and monthlies and even of the city dailies was 
widened, while the resulting competition tended to 
weed out the weaker and more local. Illustrations 
improved and changed the physical appearance of 
periodical literature. 

Social organizations of national scope or ambition 
took advantage of the new communication. Trade 



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NATIONAL BUSINESS 188 

unions, benevolent associations, and professional so- 
cieties multiplied their annual congresses and con- 
ventions, and increased the proportion of the popu- 
lation that knew something of the whole Union. A 
few periodicals and pattern-makers began to circu- 
late styles, which clothing manufacturers imitated 
and local shopkeepers sold at retail. Mail-order 
business was aided by the same conditions. A new 
uniformity in appearance began to enter American 
life, weakening the old locidisms in dress, speech, 
and conduct. Until within a few years it had been 
possible here and there to sit down to dinner ^^ with 
a gentleman in the dress of the early century — 
ruffles, even bag-wig complete " ; but the new stand- 
ards were the standards of the mass, and it became 
increasingly more difficult to keep up an aristocratic 
seclusion or a style of life much different from that 
of the community. 

With the growth of national uniformity went also 
the concentration of control. As the field of competi- 
tion widened, the number of possible winners declined. 
Men measured strength, not only in their town or 
State, but across the continent, and the handful of 
leaders used the facilities of communication as the 
basis for the further expansion of their industries. 
Business was extended because it was possible and 
because it was thought to pay. 

Many of the economies of consolidation were so 
obvious as to need no argument. If a single firm 
could do the business of five, — or fifty — it increased 
its profit through larger and better plants, greater 
division of labor, and a more careful use of its by- 



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164 THE NEW NATION 

products. It oould cut down expenses by reducing the 
army of competing salesmen and by lessening the 
duplication of administrative offices. The same eco- 
nomics in management which had driven the Old 
South to the large plantation as a type drove Ameri- 
can industrial society toward economic consolidation 
and the trusts. 

The technical form of organization of the trust was 
unimportant. Strictly speaking, it was a combina- 
tion of competing concerns, in which the control of 
all was vested in a group of trustees for the purpose 
of uniformity. The name was thus derived, but it 
spread in popular usage until it was regarded as gen- 
erally descriptive of any business so large that it 
affected the course of the whole trade of which it was 
a part. The logical outcome of the trust was mono- 
poly, and trusts appeared first in those industries in 
which there existed a predisposition to monopoly, an 
excessive loss through competition, or a controlling 
patent or trade secret. 

The first trust to arouse public notice was concerned 
in the transportation and manufacture of petroleum 
and its products. Commercial processes for refining 
petroleum became available in the sixties, enabling 
improvements in domestic illumination that insured 
an increasing market for the product. The industry 
was speculative by nature because of the low cost of 
crude petroleum at the well and the high cost of de- 
livering it to the consumer. Slight rises in price 
caused the market to be swamped by overproduction, 
and threw the control of the industry into the hands 
of those who controlled its transportation. 



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NATIONAL BUSINESS 185 

Once above ground, the cheap and bulky oil had to 
be hauled first to the refiner and then to the con- 
sumer. The receptacles were expensive, and the 
methods of transportation that were cheapest in 
operation had the greatest initial cost. Barrels were 
relatively cheap to buy, but were costly to handle. 
Tank-cars were more expensive, but repaid those who 
could afford them. Pipe-lines were beyond the means 
of the individual, but brought in greater returns to 
the corporations that owned them. 

It was inevitable that some of the dealers who 
competed in the oil-fields of Ohio, Pennsylvania, and 
West Virginia in the sixties should realize the stra- 
tegic value of the control of transportation and profit 
by it. John D. Bockef eller happened to be more suc- 
cessful than others in manipulating transportation. 
His refineries .grew in size, as they bought out or 
crushed their rivals, until by 1882 most of the traffic 
in petroleum was under his control. Economy and 
sagacity had much to do with the success, but were 
less significant than transportation. Bailway rates 
were yet unfixed by law and every road sold trans- 
portation as best it could. Bockef eller learned to bar- 
gain in freight rates, and through a system of special 
rates and rebates gained advantages over every com- 
petitor. His lobby made it difficult to weaken him 
through legislative measures, while his attorneys were 
generally more skillful than his prosecutors before 
the courts. The recognition of the existence of re- 
bates did much to hasten the passage of the Interstate 
Commerce Law. The group of corporations that 
flourished because of them became the greatest of the 



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166 THE NEW NATION 

trusts. By 1882 the affiliated Sockef eller campanies 
were so numerous and complicated that they were 
given into the hands of a group of trustees to be 
managed as a single business. 

The Whiskey and Sugar Trusts, formed in 188*^, 
had to do with commodities in which transportation 
was not the controlling element. These industries 
suffered from overproduction and ruinous competi- 
tion, to eliminate which the distiUeries and sugar re- 
fineries entered into trust agreements like that of the 
Standard Oil companies. Other lines of manufacture 
followed as best they could. Before Cleveland was 
inaugurated the trend was noticed and attacked. 

Most of the agitation against the trusts came from 
individuals whose lives were touched by them. Com- 
petition was ruthless and often unscrupulous. Every 
man who was crushed by it hated his destroyer. 
There was much changing of occupations as firms 
merged and reorganized and as plants grew in size 
and ingenuity. Perhaps more workers changed the 
character of their occupation in the eighties than in 
any other decade. As each individual readjusted 
himself to his new environment, he added to the 
mass of public opinion that believed the trusts to be 
a menace to society. 

As early as 1881 there was a market for anti-trust 
literature, for in March of that year the Atlantic 
Monthly printed the " Story of a Grreat Monopoly," 
by Henry Demarest Lloyd, who became one of the 
leaders in the attack. It had been fashionable to re- 
gard success as a vindication of Yankee cleverness 
and worthy of emulation, without much examination 



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NATIONAL BUSINESS 167 

of the methods by which it was attained. The Stand- 
ard Oil Company, attracting attention to itself, 
raised the question of the effect of industry upon 
society. 

The eyils ascribed to the trusts were social or 
politicaL In a social way they were beUeved to 
cheek individualism and to create too large a pro- 
portion of subordinates to independent producers* 
As monopolies, they were believed to threaten ex- 
tortion through high price. It was strongly suspected 
of the lai^est trusts that having destroyed all com- 
petition they could fix prices at pleasure. Economists 
pointed out that such price could hardly be high 
and yet remunerative to the trusts, because the latter 
did not dare to check consumption. But fear of op- 
pression could not be dispelled by any economic 
law. 

The trust was believed to have an evil influence 
in politics, and to obtain special favors through brib- 
ery or pressure. The United States was used to the 
influence of money in politics, and distrusted public 
officials. The state constitutions framed in this pe- 
riod were being expanded into codes of specific law 
in the hope of safeg^rding public interests. There 
was little belief that corrupt overtures, if made by 
the trusts, would be resisted. 

Lloyd, and men of his type, believed in regulation 
and control. Some of them became socialists. Others 
hoped to restore a competitive basis by law. The 
greatest impression on the public was made by one 
of their literary allies, Edward Bellamy. 

Early in 1888 Edward Bellamy published a ro- 



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168 THE NEW NATION 

• 

mance entitled LooJdng Backward^ in which his 
hero, Mr. Julian West, went to sleep in 1887, ¥Hith 
labor controversy and trust denunciation sounding 
in his ears, to awake in the year 2000 a.d. The so- 
cialized state into which the hero was reborn was a 
picture of an end to which industry was perhaps 
drifting. It caught public attention. Clubs of en- 
thusiasts tried to hasten the day of nationalization 
by forming Bellamistic societies. Those who were 
repelled by a future in which the trusts and the 
State were merged became more active in their de- 
mand for regulation. 

The legislative side of trust regulation, like that 
of railway regulation, was made more difficult because 
of the division of powers between Congress and the 
States. It was an interesting question whether one 
State could control a monopoly as large as the na- 
tion. But the States passed anti-trust laws by the 
score, as they had passed the railway laws. As in 
the earlier case they found their model in the com- 
mon law, which had long prohibited conspiracies in 
restraint of trade. One of the States, Ohio, with 
only the common law to go upon, brought suit 
against the Standard Oil Trust and secured a pro- 
hibition against it in 1892. It was relatively easy to 
attack the formal organization of the trust, but in 
spite of such attacks concentration continued to pro- 
duce ever greater combinations, as though it were 
fulfilling some fundamental economic law. 

Those of the anti-monopolists who were also tarifE 
reformers had a weapon to urge besides that of reg- 
ulation. They maintained that part of the power of 



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NATIONAL BUSINESS 169 

the corporations was due to the needless favors of 
protection, which deprived the United States of the 
aid that competition from European manufacturers 
might have given. They insisted that a revision of 
the tariff would do much to remove the burden of 
the trusts. The House ordered an investigation of the 
trusts while it was engaged on the futile Mills Bill 
in 1888, but it was the latter that furnished the text 
for the ensuing presidential campaign. 

So &r as the parties were concerned the Repub- 
licans took the aggressive in 1888. Cleveland's em- 
phasis upon tariff reduction was personal and never 
had the cheerful support of the whole party. The 
manufacturers, however, were thoroughly scared by 
the continued threats of revision. As they had come, 
by supporting the party in power, to support the 
Bepublicans, so they now organized within that party 
to save themselves. Their leaders sang a new note 
in 1888, no longer apologizing for the tariff or urg- 
ing reduction, but defending it on principle, — on 
Clay's old principle of an American system, — and 
asking that it be made more comprehensive. From 
Florence, and then from Paris, Blaine replied to 
Cleveland's Message of 1887, and his friends con- 
tinued to urge his nomination for the Presidency. 
Only after his positive refusal to be a candidate did 
the Republican Convention at Chicago make its 
choice from a list of candidates including Sherman, 
Oresham, Depew, Alger, Harrison, and Allison. 
The ticket finally nominated consisted of Benjamin 
Harrison, a Senator from Indiana, and Levi P. Mor- 
ton, a New York banker. The platform was '< un- 



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170 THE NEW NATION 

oompromisingly in favor of the American sjrstem of 
protection/' It denounced Cleveland and the revi- 
sionists as serving ^^ the interests of Europe/' and 
condemned ^'the Mills Bill as destructive to the 
general business, the labor, and the farming inter- 
ests of the country." 

The Democrats, as is usual for the party in power, 
had already held their convention before the Repub- 
licans met. They had renominated Grover Cleveland 
by acclamation, and Allen O. Thurman, of Ohio, as 
Vice-President, and had indorsed, not the MiUs Bill 
by name, but the views of Cleveland and the efforts 
of the President and Representatives in Congress to 
secure a reduction. For many of the Democrats the 
need to defend tariff reform was so distasteful that 
they left the party, blaming Cleveland as the cause 
of their defection. 

The canvass of 1888 was not marred by the per- 
sonalities of 1884. The issue of protection was dis- 
cussed earnestly by both parties, Blaine, who re^ 
turned from Europe, leading the Republican attack. 
The only exciting incidents of the campaign had to 
do with the *^ Murchison Letter " and the campaign 
fund. 

Matthew S. Quay, whose career as Treasurer of 
Pennsylvania had not been above reproach, was 
chairman of the Republican campaign committee. 
During the contest it was asserted that he was assess- 
ing the protected manufacturers and guaranteeing 
them immunity in case of a Republican victory. 
He was at least able to play upon their fears and 
bring a vigorous support to the protective promises 



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NATIONAL BUSINESS 171 

of his parly* His committee circulated stories of the 
nn-Americanism of Cleveland, charging that free- 
trade was pro-British, and making capital out of the 
pension vetoes. Toward the end of the canvass Sir 
Lionel Sackville-West, the British Minister, fell 
into a Bepublican trap and wrote to a pretended 
naturalized Englishman, who called himself Murchi- 
son, that a vote for Cleveland would best serve Great 
Britain. His tactless blunder caused his summary 
dismissal from Washington and aided the Bepub- 
lican cause much as the Burchard affair had injured 
it four years before. 

Harrison was elected in November as a minority 
President, Cleveland actually receiving more pop- 
ular though fewer electoral votes. He came into 
office with a Bepublican Senate and a Bepublican 
House, able to carry out party intentions for the 
first time since 1883. 

Benjamin Harrison was never a leader of his 
party. He had a good war record and had been Sen- 
ator for a single term. His nomination was not due 
to his strength, but to his availability. Coming from 
the doubtful State of Indiana, he was likely to carry 
it, particularly since the Bepublican candidate for 
governor was a leader of the Orand Army of the 
Bepublic. Harrison's personal character and piety 
were valuable assets In a time when party leadiers 
were under fire. Oqce in office he had a cold abrupt- 
ness that made it easy to lose the support of asso- 
ciates who felt that their own importance was greater 
than his. 

Blaine, the greatest of thes9 associates, became 



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m THE NEW NATION 

Secretary of State, and soon bad the satisfaction of 
meeting the Pan-American Congress that he had 
called eight years before. In his interest in larger 
American affairs he lost some of his keenness as a 
protectionist and acquired a zeal for foreign trade. 
With England be had another unsuccessful tilt, this 
time over the seals of Bering Sea. 

In some of the appointments Harrison paid the 
party debts. Windom came back to the Treasury, 
although ex-Senator Piatt, of New York, claimed 
that he had been promised it. John Wanamaker, 
who had raised large sums in Philadelphia to aid 
Quay in the campaign, became Postmaster-General. 
The Pension Bureau, important through the alliance 
with the soldiers, went to a leader of the Grand 
Army of the Bepublic, one "Corporal" Tanner, 
whose most famous utterance related to his inten- 
tions : " God save the surplus I " 

The Fifty-first Congress, convening in December, 
1889, took up with enthusiasm the mandate of the 
election, as the Bepubhcans saw it, to revise the 
tariff in the interest of protection. It chose as Speaker 
Thomas B. Beed, of Maine, and revised its rules so 
as to expedite legislation. William McKinley pre- 
pared a revision of the tariff in the House, while 
another Ohioan, John Sherman, took up the matter 
of the trusts in the Senate. 

The Sherman Anti-Trust Law was enacted in 
July, 1890, after nearly ten years of general discus- 
sion. Although formulated by Bepublicans — Sher- 
man, Edmunds, and Hoar — it was not more dis- 
tinctly a party measure than the Interstate Commerce 



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NATIONAL BUSINESS 178 

Act Iiad been. It relied upon the interstate commerce 
clause of the Constitution as its authority to declare 
illegal ** every contract, combination in the form of 
trust or otherwise, or conspiracy, in restraint of com- 
merce among the several States, or with foreign na- 
tions,'' and it provided suitable penalties for violation. 
The most significant debate in connection with it 
occurred upon an amendment offered by Bepresenta- 
tive Richard P* Bland, of Missouri, who desired to 
extend the scope of the prohibition, specifically, to 
railroads. The Senate excluded the amendment on 
the ground that the law was general, covering the 
railroads without special enumeration. The full 
meaning of the law remained in doubt for nearly 
fifteen years, for few private suitors invoked it and 
the Attorneys-General were not hostile to the ordi- 
nary practices of business. A great financial depres- 
sion which appeared in 1893 acted well as a tem- 
porary deterrent of trusts. There was a suspicion 
that the law had been intended not to be enforced, 
but to act as a popular antidote to the McEonley 
Tariff Bill which was pending while it passed. 

There were two reasons for a revision of the tariff in 
1890. The surplus, still a reason, added $105,000,000 
in 1889, and continued to embarrass the Treasury 
with a wealth of riches. Secondly, the- election of 
1888 had gone Republican, and party leaders chose 
to regard this ^as a popular condemnation of Cleve- 
land and tariff reform, and a popular mandate for 
higher protection, in spite of the fact that more 
Americans voted for Cleveland than for Harrison. 
A third reason, alleged by the opposition, was the 



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m THE NEW NATION 

neoessily of fulfilling the pledges given by Quay and 
the campaign managers to the manufacturers who 
contributed to the campaign fund, — manufacturers 
who were parodied as " Mary " : — 

«Our Mary had a little Iamb, 
Her heart was most intent 
To make its wool, beyond its worth. 
Bring 66 per oent." 

In April, 1890, McKinley presented his act ^^ to 
equalize the duties upon imports and to reduce the 
revenues." For five months Congress wrestled with 
the details of the bill and the issues connected with 
it. In June it rewarded the soldier allies of the 
Administration with a Dependent Pension Act which 
granted pensions to those who could show ninety 
days of service and present dependence, and which, 
aided by the previous laws, relieved the surplus of 
$1,350,000,000 in the next ten years. Early in July 
the Anti-Trust Act was passed. Two weeks later 
Congress paused in its tariff deliberations to pass 
the Sherman Silver Purchase Bill at the demand 
of Eepublican Senators from the Bocky Mountain 
States, who wanted their share of protection in this 
form and were so numerous as to be able to produce 
a deadlock. 

The tariff that became a law October 1, 1890, was 
the first success in tariff legislation since the Civil 
War. It enlarged protection and reduced the rev- 
enue. The latter was done by repealing the duty on 
raw sugar, which had been the most remunerative 
item of the old tariff, and by substituting a bounty 
of two cents per pound to the American sugar-grower, 



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NATIONAL BUSINESS 175 

which further relieved the surplus. The sugar clause 
was one of the notable features of the MoKinley 
Bill, and was closely related to a group of duties 
upon agricultural imports. There had been complaint 
among the farmers that protection did nothing for 
them. The agricultural schedule was designed to 
silence this complaint. 

Another novelty in the bill was the extension of 
protection to unborn industries. In the case of tin 
platOi the President was empowered to impose a 
duty whenever he should learn that American mills 
were ready to manufacture it. This was an applica- 
tion of the principle that went beyond the demands 
of most advocates of protection. 

A final novelty, reciprocity, was the &vorite 
scheme of the Secretary of State. Blaine, in his for- 
eign policy, saw in the tariff wall an obstacle to 
friendly trade relations, and induced Congress to 
permit the duties on the chief imports from South 
America to be admitted on a special basis in return 
for reciprocal favors. McEinley, as his experience 
widened, accepted this principle in full, and died with 
an expression of it upon his lips. But in 1890 most 
protectionists inclined toward absolute exclusion, re- 
gardless of foreign relations, and were ready to raise 
the rate whenever the imports were large. 

In the passage of the McKinley Tariff Bill it was 
noticed that a third body was sharing largely in such 
legislation. After each house had passed the bill 
and disagreements on amendments had been reached, 
it was sent to a Joint Committee of Conference 
whose report was, by rule, unamendable. In the 



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176 THE NEW NATION 

Conference Committee the bill ytbs finally shaped, 
and so shaped that the Republican majority was 
forced to accept it or none. The party leaders who 
sat on the Committee of Conference were a third 
house with almost despotic power, and were, as well, 
men whose association with manufacturing districts 
or protected interests raised a fair question as to the 
impartiality of their decisions. The Republican re- 
ply, in their hands, to the assertion that the tariff 
was the mother of trusts was to raise the tariff still 
higher and to forbid the trusts to engage in inter- 
state oonmierce. 

BIBLIOGRAPHICAL NOTE 

Hie Life of Henry Demarest Lloyd, by C. Lloyd (2 toIs^ 
1912) contains an admirable and sympathetio survey of the 
growth of anti-trust feeling, and should be supplemented by 
the writings of H. D. Lloyd, more particularly, ** The Story of 
a Great Monopoly " (in Atlantic Monthly, March, 1881), and 
Wealth against Commonwealth (1894). The philosophy of 
Henry George is best stated in his Progress and Poverty (1879), 
and is presented biographically by H. Greorge, Jr., in his Life 
of Henry George (1900). The most popular romance of the 
decade is based upon an economic hypothesis : £. Bellamy, 
Looking Backward (1887). J. W. Jenks, The Trust Problem 
(1900, etc.), has become a classic sketch of the economics of 
industrial concentration. The histories of the Standard Oil 
Company, by I. M. Tarbell (2 vols., 1904) and G. H. Monta- 
gue (1903), are based largely upon judicial and congressional 
inyestigations. The Sherman Law is discussed in the writings 
and biographies of Sherman, lloar, and Edmunds, and in A. 
H. Walker, History of the Sherman Law (1910). For the elec- 
tion of 1888, consult Stanwood, Andrews, Peck, the Annual 
Cyclopasdia, the tariff histories, and D. R. Dewey, National 
Problems, 1886-1897 (in The American Nation^ voL 24, 1907). 



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CHAPTER XI 



THE FABMEBS' OAUSB 



The Bepublican protective policy had its strong* 
est supporters among the industrial communities o£ 
the East where the profits of manu&oture were dis- 
tributed. In the West, where the agricultural staples 
had produced a simplicity of interests somewhat re* 
sembling those of the Old South in its cotton crop, 
the advantage of protection was questioned even in 
Bepublican communities. The Granger States and 
the Prairie States were normally Republican, but 
they had experienced falling prices for their com and 
wheat, as the South had for its cotton, in the eighties, 
and had listened encouragingly to the advocates of 
tariff reform. Cleveland's Message of 1887 had af- 
fected them strongly. Through 1888 and 1889 conn- 
try papers shifted to the support of revision, while 
farmers' clubs and agricultural journals began to de- 
nounce protection. The Bepublican leaders felt the 
discontent, and brought forward the agricultural 
schedules of the McKinley BiU to appease it, but 
dissatis&ction increased in 1889 and 1890 through 
most of the farming sections. 

The farmer in the South was directiy affected by 
the filing price of cotton, and retained his heredi- 
tary aversion to the protective tariff. He could not 
believe that either party was working in his interests. 
The dominant issues of the eighties did not touch his 



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178 THE NEW NATION 

problems. He was not interested in ciyil service re- 
form, which was a product of a differentiated society, 
in which professional ezpertness was recognized and 
valued. He knew and cared little about administrar 
tion, and being used to a multitude of different tasks 
himself saw no reason why the offices should not be 
passed around. In this view American farmers gen- 
erally concurred. 

The Southern farmer was without interest in the 
pension system and was {nrone to criticize it. The 
Fourteendi Amendment had forced the repudiation 
of the whole Confederate debt, leaving the Southern 
veterans compelled to pay taxes that were disbursed 
for the benefit of Union veterans and debarred from 
enjoying similar rewards. They could not turn Repub- 
lican, yet in their own party they saw men who failed 
to represent them. 

In the North agriculture was depressed and the 
farmers were discontented. In many regions the farms 
were worn out. Scientific farming was beginning 
to be talked about to some extent, but was little 
practiced* The improvements in transportation had 
brought the younger and more fertile lands of the 
West into competition with the East for the city 
markets. Cattle, raised on the plains and slaughtered 
at Kansas City or Chicago, were offered for sale in 
New York and Philadelphia. Western fruits of supe« 
rior quality were competing with the common varie- 
ties of the Eastern orchards. Here, as in the South, 
the farmers saw the parties quarreling over issues 
that touched the manufacturing classes, but disre- 
garding those of agriculture. 



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THE FABMERS* CAUSE 179 

It was in the West, however, tliat agricultural dis- 
content was keenest* In no other region were uniform 
conditions to be found over so large an area. The 
Granger States had shown how uniformity in discon- 
tent may bring forth political readjustments. The 
new region of the late eighties lay west of Missouri 
and Iowa, where the railroads had stimulated settle- 
ment along the further edge of the arable prairies. 
Texas, Kansas, Colorado, and the Dakotas had passed 
into a boom period about 1885, and had pushed new 
&rms into regions that could not in ordinary years 
produce a crop. Only blinded enthusiasts beUeved 
that the climate of the sub-humid plains was chang- 
ing. In good years crops will grow as far west as the 
Bockies : in bad, they diy up in eastern Kansas. 

It served the interest of the railroads to promote 
new settlements, and speculation got the better of 
prudence. The rainfall cooperated for a few years, 
enabling the newcomers to break the sod and set up 
their dwellings and bams. The quality of the settlers 
increased the dangers attendant upon the community. 

Under earlier conditions in the westward migration 
each frontier had been settled, chiefly, by occupants 
of the preceding frontier, who knew the climate and 
understood the conditions of successful farming. The 
greater distances in the &rther West, and the ease of 
access which the railroads gave, brought a less capa- 
ble dass of farmers into the plains settlements. 
Some were amateurs ; others knew a different type 
of agriculture. The population which had to deal 
with this new region was less likely to succeed than 
that of any previous frontier. 



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180 THE NEW NATION 

The frontier of the eighties presented new ob- 
stacles in its doubtful rainfall and its experimental 
fanners. It contained as well the conditions that 
had always prevailed along the edge of settlement. 
Transportation was vital to its life, — as vital as it 
had been in the Granger States, — yet was nearly as 
unregulated. The Interstate Commerce Law of 1887 
had littie noticeable immediate effect. Discrimination, 
unreasonable rates, and overcapitalization were still 
grievances that affected the West The new activity 
of organized labor, shown in the Western strikes of 
1886 and 1886, added another obstacle to the easy 
prosperity of farmers who needed uninterrupted train 
service. The germs of an anti-railroad movement 
were well distributed. 

An anti-corporation movement, too, might reason- 
ably be expected in this new frontier. Producing 
only the raw products of agriculture, its inhabitants 
bought most of the commodities in use from distant 
sections. They were impressed with the cost of what 
they had to buy and the low price of what they sold. 
They were ready listeners to agitators against the 
trusts. 

Like all frontiers, this one was financed on bor- 
rowed money. The pioneer was dependent on credit, 
was hopeful and speculative in his borrowings, built 
more towns and railroads than he needed, and loaded 
himself with a mountain of debt that could be met 
only after a long series of prosperous years. 

By necessity he was readily converted by the argu- 
ments of inflation. Greenback inflation had run its 
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THE PAKMERS* CAUSE 181 

in 1879 had been only a political threat without 
foundation or many followers. A Greenback party, 
affiliating with labor and anti-monopoly interests, had 
nominated Weaver in 1880 and Butler in 1884, but 
even inflationists had not voted for the ticket in 
large number. A new phase of inflation had become 
more interesting than the greenbacks, and had led 
to the demand for the free coinage of silver. 

Among the demands of the Western farmer, whose 
greatest problem was the payment of his debts, none 
was more often heard than that for more and cheaper 
money. The Eastern farmer, though less burdened 
with debt, knew that more money would make higher 
prices, and believed it would bring larger profits. 
The Southern farmer, heavily in debt, not so much 
for purposes of development and permanent improve- 
ments, as because he regularly mortgaged his crop in 
advance and allowed the rural storekeeper to finance 
him, was also interested in inflation as a common 
remedy. Together the farmers of all sections kept 
pressing on the parties for free silver after the pass- 
age of the Bland-Allison Bill in 1878. As the price 
of silver declined the gain which silver inflation 
would bring them increased, and they were joined 
by another class of producers whose profits came 
from mining the silver bullion. 

The silver mines furnished important industries 
in Montana, Idaho, Colorado, Utah, Nevada, Arizona, 
and California, and were highly valued in most of 
the Western communities. As their output declined 
in value after 1873, their owners- turned to the 
United States Government for aid and protection, 



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182 THE NEW NATION 

not differing much from the manufacturers of the 
East in their hope for aid. The restoration of silver 
coinage was the method by which they desired their 
protection, and they asserted that Congress could 
coin all the silver and yet maintain it at a parity 
with gold. They were allies with the farmer infla- 
tionists so far as means of relief were concerned, 
and both failed to see how incompatible were their 
real aims. The miners wanted free silver in order to 
increase the price of silver and their profits; the 
farmers wanted it to increase the volume of money 
and reduce its value. If either was correct in his 
prophecy as to the result of free coinage, the other 
was doomed to disappointment. But the combined 
demand was reiterated through the eighties. While 
times were good it was not serious, but any shock to 
the prosperity or credit of the West was likely to 
stimulate the one movement in which all the discon- 
tented concurred. 

The crisis which precipitated Western discontent 
into politics came in 1889 when rainfall declined 
and crops failed. In the Arkansas Valley, with an 
average fall of eighteen inches, the total for this 
year was only thirteen inches. General Miles, who 
had chased hostile Indians across the plains for more 
than twenty years, and who had seen the new vil- 
lages push in, mile by mile, saw the terrible results 
of drought. First suffering, then mortgage, then 
foreclosure and eviction, he prophesied. ^^ And should 
this impending evil continue for a series of years," 
he wrote, " no one can anticipate what may follow." 
The glowing promises of the early eighties were fal- 



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THE FARMERS' CAUSE 183 

sified, whole towns and counties were deserted, and 
the farmers turned to the Government for aid. 

The Western upheaval followed a period in which 
both great parties had been attacked as misrepre- 
sentative. There was a widely spread belief that 
politicians were dishonest and that the Government 
was conducted for the favored classes. It was natural 
that the discontented should take up one of the agri- 
cultural organizations already existing, as the Gran- 
gers had done, and convert it to their political 
purpose. 

Since the high day of the Granger movement 
there had always been associations among the farm- 
ers and organizations striving to get their votes. 
The Grange had itself continued as a social and 
economic bond after its attack upon the railroads. 
There had been a Farmers' Union and an Agricul- 
tural WheeL The great success of the Knights of 
Labor and the American Federation of Labor had 
had imitators who were less successful because farm- 
ing had been too profitable to give much room for 
organized discontent, while in times of prosperity 
the farmer was an individualist. A new activity 
among the farmers' papers was now an evidence of 
a growing desire to get the advantage of cooperation. 

The greatest farmer organization of the eighties 
was the Farmers' Alliance, a loose federation of agri- 
cultural clubs that reflected local conditions. West 
and South. In the South, it was noted in 1888 as 
" growing rapidly," but " only incidentally of politi- 
cal importance." In Dakota, it had been active since 
1886^ conducting for its members fire and hail in- 



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184 THE NEW NATION 

surance, a purchasing department, and an elevator 
company. In Texas it was building cotton and woolen 
mills. The machinery of this organization was used 
by the farmers in stating their common cause, and 
as their aims broadened it merged, during 1890, into 
a People's Party. In Kansas, during the summer of 
this year, the movement broke over the lines of both 
old parties and had such success that its promoters 
thought a new political party had been born. 

Agricultural discontent, growing with the hard 
times of 1889, had been noticed, but there had been 
no means of measuring it until Congress adjourned 
after the passage of the McKinley Bill and the mem- 
bers came home to conduct the congressional cam- 
paign of 1890. They found that the recent law had 
become the chief issue before them. The so-called 
popular demand for protection, revealed in the elec- 
tion of 1888, had after all been based upon a minor- 
ity of the votes cast. The tariff and the way it had 
been passed were used against them by the Demo- 
crats and the Farmers' Alliance. 

The act was passed so close to election day that 
its real influence could not then be seen and its op- 
ponents could not be confuted when they told of the 
evils it would do. Before the election of 1888, as 
again in 1892, Bepublican manufacturers frightened 
their workmen by threats of closing down if free- 
traders won. This time the tables were turned against 
them by the recital of prospective high prices. 

Corrupt methods in framing the schedules fur- 
nished an influential argument throughout the West. 
Even in the East the tariff reformers asserted that 



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THE FAEMEBS' CAUSE 185 

undue favors had been done for greedy interests; that 
manufacturers who had bought immunity by their 
contributions to Quay's campaign fund had been 
rewarded with increased protection. The farmers 
believed these charges, plausible though unprovable, 
for they were disposed to believe that both the great 
parties were interested only in selfish exploitation of 
the Government to the advantage of poUticians. 

In every State Bepublican candidates had to meet 
this fire as well as the local issues. In Maine, Beed 
met it and was elected with enlarged majority from 
a community that wanted protection. In Ohio, Mc- 
Kinley lost his seat, partly from the revulsion of feel- 
ing, but more because the Democrats, who controlled 
the State Legislature, had gerrymandered his district 
against him. Cannon, of Illinois, who had already 
served nine terms and was to serve ten more, lost 
his seat, and LaFollette, of Wisconsin, whom the 
protectionists had made much of, was checked early 
in a promising career because of an educational issue 
in his State. Pennsylvania, protectionist at heart, 
elected the Democratic ex-governor Pattison again 
in one of its revulsions against the Quay machine. 

The Democrats defeated the Bepublicans in the 
East while the Farmers' Alliance undermined them 
in the West. In Kansas and Nebraska the Alliance 
controlled the result, sent their own men to Wash- 
ington, and secured the Kansas Legislature which 
returned the first Populist Senator. In several States 
fusion tickets were successful with Democratic and 
Alliance support. In the South, Democrats found it 
aided them in winning nomination — for the real 



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186 THE NEW NATION 

Southern election was within this party and not at 
the polls — to assert that they were and had been 
farmers. 

When the votes were counted the extent of the 
reaction was realized. The last Congress had con- 
tained a safe majority of Bepublicans in each house. 
The new Congress, the Fifty-second, chosen in 1890, 
had lost the high-tariff majority in the lower body. 
Only 88 Bepublicans were elected, against 286 Dem- 
ocrats and 8 of the Alliance. The Bepublicans re- 
tained the Senate partly because of the ^ rotten bor- 
ough " States, Idaho and Wyoming^, which they had 
just admitted. 

The greatest factor in the landslide was the tariff, 
but this was, largely, only the occasion for an outburst 
of discontent that had been piling up for a decade. 
The dominant party was punished because things 
went wrong, because the trusts throve and htbor was 
uneasy, because prices declined, because there were 
scandals in the Public Lands and Pension Bureaus, 
and because the rainfall had diminished on the plains. 
The new House elected a Georgian, Crisp, as Speaker, 
and the second half of Harrison's term passed quietly. 
Among the people, however, there was much conjec- 
ture upon the future of the Farmers' Alliance. A 
convention at Cincinnati, six months after the elec- 
tion, tried to unite the new element and form a third 
party of importance. 

Union between the Knights of Labor and the 
Farmers' Alliance for political purposes was the aim 
of the promoters of the People's Party, a parly that 
was to right all the wrongs from which the plain 



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THE FABMERS' CAUSE 187 

people suffered and restore the Government to their 
hands. Until the next presidential election they had 
time to organize for the crusade. 

The United States, by 1890, had begun to feel 
the influence of the agencies of communication in 
breaking down sectionalism and letting in the light 
of comparative experience. Men who survived from 
the generation that flourished before the war found 
their cherished ideas undermined or shattered. In 
public life, administration, literature, and religion 
the old order was being swept away. The United 
States had become a nation because it could not 
avoid it. Even the Congregational churches, with 
whom parish autonomy was vital, had seen fit to 
erect a National Council. Every important activity 
of trade had become national, and the only agency 
that retained its old localism was the law, which 
must cope with the new order. In many ways the 
trust problem was the result of an inadequate legal 
system which left a wide ^^ twilight zone " between the 
local capacity of the State and the 'activity of the 
Nation. Yet the Nation was unfolding and expand- 
ing its powers. Kailroad control, immigration and 
labor control, agricultural experiment, irrigation, and 
reclamation were only samples of the new lines of 
activity that created new administrative machinery 
and advanced abreast of the new idea of appointment 
because of merit and tenure during good behavior. 
Men who continued to see the center of political 
gravity in the State Governments were behind the 
times. 

An indigenous literature was rising in the United 



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188 THE NEW NATION 

States. Dickens had lived long enough to reoogDize 
the spirit of a new school in I%e Luck of Roaring 
Campy and Thb Oittcasts of Poker Flat^ which ap- 
peared in 1868. Before 1890 the fame of their author, 
Bret Harte, was secure. Samuel Langhome Clemens 
(Mark Twain), too, had seen the native field and had 
exploited it. The New England school, Emerson and 
Longfellow, Whittier, Holmes, and Lowell, lived into 
or through the eighties, but were less robust in their 
American flavor than their younger contemporaries 
who picked subjects from the border. Tom Sawyer^ 
HuiMeberry Finn^9Ji<dL the Connecticvt YarJcee were 
life as well as art. Another writer of the generation, 
William Dean Howells, gave The Rise of JSUaa 
Lapham to the world in 1885, and revealed a different 
stratum of the new society, while the vogue of lAtUe 
Lord Fauntleroy tells less of the life therein de- 
scribed than of tiie outlook of American readers. 

Pure literature was in 1890 turning more and more 
to American subjects ; applied literature was searching 
for causes and explanations. The writings of Henry 
George, particularly his Progress and Poverty^ 
brought him from obscurity to prominence in six 
years, and by 1885 had "formed a noteworthy epoch 
in the history of economic thought." The success of 
Bellamy's Utopian romance proved the avidity of the 
reading public. Parkman and Bancroft, of the older 
generation, Henry Adams, McMaster, and Rhodes, 
of the younger, led the way through history to an 
understanding of American conditions. Economics, 
sociology, and government were beginning to have a 
literature of their own, the last receiving its strong- 



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THE FARMERS' CAUSE 189 

est impulse from the thoughtful American Common^ 
wealth of James Bryce. 

In the field of periodical literature the rising 
American taste was supporting a wider range of 
magazines. The old and dignified North American 
Review was still an arena for political discussion. 
During 1890 it printed an important interchange of 
views between William E. Gladstone and James G. 
Blaine, on the merits of a protective tariff. Harper* 8 
Monthly and the Atlantic had given employment to 
the leading men of letters since before the Civil War. 
Leslie^ s and Harper^ 8 Weeklies had added illustra- 
tion to news, making their place during the sixties, 
while the Independent held its own as the leading 
religious newspaper and the Nation appeared as a 
journal of criticism. Scribner^s and the Century had 
been added more recently to the list of monthlies, 
the latter running its great series of reminiscences 
of the battles and leaders of the Civil War and its 
life of Lincoln by Nicolay and Hay. Improvements 
in typography and illustration, combined with greater 
ease in collecting the news and distributing the pro- 
duct, made all the periodicals more nearly national. 

The periodicals, in a measure, took the place as 
national leaders that the newspapers had before. The 
newspaper as a personal expression was passing 
away, as the great editors of Horace Greeley's gen- 
eration died. The younger editors were making in- 
vestments rather than journalistic tools out of their 
papers. Trade and advertisement used this vehicle 
to approach their customers. News collecting became 
more prompt and adequate, but the opinion of the 



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190 THE NEW NATION 

papers dwindled. They bought their news from syn- 
dicates or associations, as they bought paper or ink. 
The counting-house was coming to outrank the edito- 
rial room in their management. 

Through the new literature the changing nature 
of American life was portrayed, and as the life re- 
shaped itself under nationalizing influences theology 
lost much of its old narrowness. Among religious 
novels Robert Elamere was perhaps most widely 
read. The struggle between orthodoxy and the new 
criticism had got out of the control of the professional 
theologians and had permeated the laity. A revised 
version of the Old and New Testaments gave new basis 
for textual discussion. The influence of the scientific 
generalizations of Darwin and his school had reached 
the Church and forced upon it a rephrasing of its 
views. It was becoming less dangerous for men to 
admit their belief in scientific process. The orthodox 
churches lost nothing in popularity as the struggle 
advanced, and outside them new teachers proclaimed 
new religions as they had ever done in America. 

The greatest of the new religions was that of Mrs. 
Mary Baker Eddy, in whose teachings may be found 
a religious parallel to the political revolt of the 
People's Party. Christian Science was a reaction 
from the " vertebrate Jehovah " of the Puritans to 
a more comfortable and responsive Deity. It was 
the outgrowth of a well-fed and prosperous society, 
presenting itself to the ordinary mind as ^^ primarily 
a religion of healing." 

Intellectual, spiritual, economic, and political re- 
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THE FARMERS' CAUSE 191 

have been after the industrial revolution of the last 
ten years. The whole nation was once more acting 
as a unit, for the South had outUved the worst re- 
sults of war and reorganization and was again devel- 
oping on independent lines. The immediate problem 
was the effect of the revolt upon political control. 

BIBLIOGRAPHICAL NOTE 

The materials npcm the imrest of the later eighties are yet 
nnoolleoted, and most be pnrsned through the files of the jour- 
nals, many of which are named above in the text The new 
Bcientifio periodiealB : Quarterly Journal ofEconomicSf Political 
Science Quarterly, Yale ReoieWf Journal of Political Economy ^ 
etc., devoted much space to current economic and social analysis. 
F. L. McVej, The Populist Movement (in American Economic 
Association, Economic Studies, toI. i), is useful but only frag- 
mentary. The materials on free silver are mentioned in the 
note to chapter xiv, below. A. B. Paine, Mark Ttoain, gives 
many cros»-references to the literary life of the decade. J. F. 
Jameson discusses the fertile field of American religious his- 
tory in "The American Acta Sanctorum'' (in the American 
Hiitorical Review, 1906). 



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CHAPTER Xn 

THE NEW SOUTH 

The Old Soath, in which two parties had always 
struggled on fairly equal terms, was destroyed during 
the period of the Civil War, while reconstruction 
failed completely to revive it. The New South, in 
politics, had but one party of consequence. With few 
exceptions white men of respectability voted with the 
Democrats because of the influence of the race ques- 
tion which negro sufiErage had raised. From the re- 
establishment of Southern home rule until the advent 
in politics of the Farmers' Alliance no issue appeared 
in the Southern States that even threatened to split 
the dominant vote. But under the economic pressure 
of the late eighties the old white leaders parted com- 
pany and even contended with each other for the 
negro vote to aid their plans. 

The political influence of the Alliance cannot be 
measured at the polls in the South as easily as in 
the West. In most States, in 1888 and 1890, 
Alliance tickets were promoted, often in fusion with 
the Bepublican party. The greater influence, how- 
ever, was within Democratic lines, at the primaries 
or conventions of that party. Here, among the candi- 
dates who presented themselves for nomination, the 
professional politician found himself an object of sus- 
picion. The lawyer lost some of his political availabil- 



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THE NEW SOUTH 198 

ity. Men who could claim to be close to the soil had 
an advantage* 

The value placed upon the dissatisfied farmer vote 
is shown in the autobiographical sketches which Sen- 
ators and Bepresentatives wrote for the Ciyngre^ 
9ional Directory of the Fifty-second Congress. Some 
who had never before held office stated the fact with 
apparent pride. One, who appeared from the Texas 
district which John H. Beagan had represented 
through eight Congresses, announced that he ^^ be- 
came a member of the Order of Patrons of Hus- 
bandry, and took an active interest in advocating 
the cause of progress among his fellow laborers ; is 
now Overseer of the Texas State Gh*ange and Presi- 
dent of the Texas Farmer Cooperative Publishing 
Association." From Georgia came several Bepre- 
sentatives of this type. One *^ has devoted his time 
exclusively [since 1886] to agricultural interests, 
and is a member of the Farmers' Alliance." An- 
other was elected ^^ as an Alliance man and Demo- 
crat." A third " was Vice-President of the Georgia 
State Agricultural Society for eleven years, and 
President of the same for four years; he is now 
President of the Georgia State Alliance." A fourth, 
Thomas £. Watson, lawyer, editor, historian, and 
leader of the new movement, ^^ has been, and still is, 
largely interested in farming." A South Carolina 
Bepresentative covered himself with the generous 
assertion that he was ^^ member of all the organizap 
tions in his State designed to benefit agriculture." 

The agricultural bases of the Southern political 
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194 THE NEW NATION 

that had recently appeared. The South was not with- 
out a pioneer immigration resembling that of the 
West. Many of the carpet-baggers had undertaken 
to develop &rms there. There was much opportu- 
nity for rural speculation that increased in attrac- 
tiyeness as the area of free Western lands diminished. 
So far as this went, it produced a debtor class and 
prepared the way for inflation. 

But the deyelopment of new areas in the South 
was less significant than the method of its industry. 
The disintegration of plantations continued steadily 
through the seventies and eighties. The figures of 
the census, showing tenure for the first time in 1880, 
and color in 1890, exaggerated this, since many of 
the small holdings there enumerated were to all in- 
tents farmed by hired labor and were only matters 
of bookkeeping. Yet there was a marked diminution 
in the size of the estates. A class of negro owners 
was slowly developing to account for a part of the 
diminution. Frugality and industry appeared in 
enough of the f reedmen to bring into negro owner- 
ship in 1900, within the slave area, 149,000 farms, 
averaging 55 acres. There were at this time 2,700,000 
farms in the South, and 5,700,000 in the whole United 
States. Negro renters and negro croppers, many of 
whom labored under the direct supervision of the 
white landlords, increased the number of individual 
farmers, and like the rest lived upon the proceeds of 
the cotton crop that was not yet grown. 

Much of the capital that was used in Southern 
agriculture came from the North through the manu- 
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THE NEW SOUTH 1»6 

merchants of the South. These merchants advanced 
credit to their customers, measuring it by the esti- 
mated value of the next crop. Once the bargain had 
been struck, the farmer bought all his supplies from 
his banker-merchant, paying such prices as the latter 
saw fit to charge. There could be little competition 
among merchants under this system, since the bur- 
den of his debt kept the planter from seeking the 
cheapest market. The double weight of extortionate 
prices and heavy interest impressed a large section 
of the South with the scarcity of cash and the evils 
of existing finance. 

In agricultural method as well as in finance the 
South was oppressed by its system. The merchant 
wanted cotton, for cotton was marketable, and could 
not be consumed by a tricky debtor. Single cropping 
was thus unduly encouraged ; diversified agriculture 
and rotation of crops made little progress. The use 
of commercial fertilizers was greatly stimulated, but 
agriculture as a whole could not advance. 

Tied fast to a system nearly as inflexible as that 
of the ante-bellum plantation, the South suffered dis- 
proportionately in years when cotton was low. De- 
pression in the later eighties and the early nineties 
intensified the suffering of the debtor class and pro- 
duced an inflation movement that allied the South 
and West in the demand for cheaper money and 
more of it. The Farmers' Alliance, with its demands 
for railroad control, trust regulation, banking reform, 
and free silver, was the logical vehicle for the ex- 
pression of Southern discontent. 

The white population of the South, undivided 



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196 THE NEW NATION 

sinoe the Civil War, was confronted in 1890 by an 
issue that bore no relation to race and that divided 
society into debtor and creditor classes. For twenty 
years, by common agreement in which the North 
had tacitly concurred, the negro had been suppressed 
outside the law. Occasional negroes had got into 
office and even to Congress in reconstruction days. 
One, who described himself as ^^ a bright mulatto," 
sat in the Fifly-first and Fifty-second Congresses, 
but in most regions of the South the negro had not 
been allowed to vote or had been ^^ counted out" at 
the polls, while only in sporadic cases, mostly in the 
mountain sections, was the Bepublican party able to 
get enough votes to elect its candidates. 

The Farmers' Alliance split the white vote and 
gave to the negro an unusual power. From being 
suppressed by all to being courted by many involved 
a change that raised his hopes only to destroy them. 
The South no sooner saw the possibility that the 
negro vote might hold a balance of power between 
two equal white factions than it took steps to remove 
itself from temptation and to disfranchise the un- 
desired dass. 

The purpose of the Fourteenth and Fifteenth 
Amendments had been to raise the freedmen to civil 
equality and protect them there. Pursuant to the 
Fourteenth Amendment, Congress passed, in 1875, 
a Civil Bights Bill, which forbade discrimination 
against any citizen in ^^ the full and equal enjoy- 
ment of the accommodations, advantages, facilities, 
and privileges of inns, public conveyances on land 
or water, theaters^ and other places of public amuse- 



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THE NEW SOUTH 197 

ment." It was restrained from imposing coeducation 
of the races only by Northern philanthropists who 
were interested in Southern education. Its compul- 
sion was disregarded at the South, where social 
equality between the races could not be attained. 
Innkeepers and railroads continued to separate their 
customers, and in time a few of them were haled 
into court to answer for violating the law. Their 
defense was that the Fourteenth Amendment for- 
bade discrimination by the States, but did not touch 
the private act of any citizen ; that it protected the 
rights of citizens, but that these rights, complete 
before the law, did not extend to social relations, — 
that attendance at a theater is not a civil right at 
all, and may properly be regulated by the police 
power without conflict with the Constitution. In the 
Civil Bights Cases, decided in 1888, the Supreme 
Court released the defendants, ruling that the Four- 
teenth Amendment was too narrow in its intention 
to justify Co^ngress in the passage of a code of social 
relations at the South. This part of reconstruction 
thus broke down, leaving the. negro population at the 
discretion of its white neighbors. 

The Fifteenth Amendment, too, had been limited 
in its protecting force before 1890. It forbade a 
denial of the right to vote by any State. The Su- 
preme Court easily determined that no violation 
could occur when a hostile mob excluded negroes 
from the polls. It had been settled before 1890 that 
the negro was defenseless against personal discrimina- 
tion. It remained to be seen whether he could be dis- 
franchised by law and yet have no redress. Not till 



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198 THE NEW NATION 

the South found some of its people appealing for 
the negro vote in the crisis of the Farmers' Alliance 
did it take the last steps in the undoing of recon- 
struction. 

The Fifteenth Amendment was not explicit. In- 
stead of asserting the right of the negro to vote, it 
said, by negation, that the right should not be denied 
on account of ^^ race, color, or previous condition of 
servitude." The three qualities of race, color, and 
servitude separated the races, but the South learned 
that they were separated by other qualities that were 
not proscribed by the amendment as a basis for the 
franchise. The negro was generally poor, and any 
qualification based on property would exclude him. 
He was shiftless, and often vagrant, and hence could 
be touched by poll-tax and residence requirements. 
He was illiterate, and was unable to meet an educa^ 
tional test. Tired of using force or fraud, the South 
began in 1890 a system of legal evasion of the Fif- 
teenth Amendment. 

The State of Mississippi, in a new constitution 
framed in 1890, defined the franchise in terms that 
bore heavily upon the negro. In the debates of its 
convention members talked frankly and freely of 
their intention to disqualify the race; the clause 
bore no mention of discrimination. It permitted per- 
sons to vote who, being male citizens over twenty- 
one, and having reasonable residence qualifications, 
had paid a poll or other tax for two years preceding 
the election, and could read, or understand and in- 
terpret when read to them, any section of the con- 
stitution of the State. Under this clause, between 



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THE NEW SOUTH 199 

the cumulative tax and the large discretionary powers 
vested in the officers of enrollment, the negro elect- 
orate was reduced until it was negligible in Missis- 
sippi ; and it was a subject of admiration for other 
Southern States, which proceeded to imitate it. 

All of the cotton States but Florida and Texas, 
and most of the old slave States, revised their elect- 
oral clauses in the next twenty years. Arkansas, in 
1893, based the franchise on a one-year poll-tax. 
South Carolina, in 1895, used residence, enrollment, 
and poll-tax, while the convention called to disfran- 
dbise the negro passed resolutions of sympathy for 
Cuban independence. Delaware, in 1897, established 
an educational test. Louisiana, in 1898, established 
education and a poll-tax; North Carolina, in 1900, 
did the same. Alabama, in 1901, made use of resi- 
dence, registry, and poll-tax. Virginia based the suf- 
frage on property, literacy, or poll-tax in 1902. 
Georgia did the same in 1908, and the new State of 
Oklahoma followed the Southern custom in 1910. 

It was relatively easy to exclude most of the 
negroes by means of qualifications such as these, but 
every convention was embarrassed by the fact that 
each qualification excluded, as well, some of the white 
voters. In nearly every case revisions were accom- 
panied by a determination to save the whites, and 
for this purpose a temporary basis of enrollment 
was created in addition to the permanent. Louisiana 
devised the favorite method in 1898. Her constitu- 
tion provided that, for a given period, persons who 
could not qualify under the general clause might be 
placed upon the roll of voters if they had voted in 



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200 THE NEW NATION 

the State before 1867 or were descended from such 
voters. The ^' grandfather clause," as this was im- 
mediately called, saved the poor whites, and was imi- 
tated by North Carolina, Alabama, Virginia, and 
Georgia. The governor of Louisiana, in 1898, sang 
the praises of the new invention : ^^ The white su- 
premacy for which we have so long struggled at the 
cost of so much precious blood and treasure is now 
crystallized into the constitution as a fundamental 
part and parcel of that organic instrument, and that, 
too, by no subterfuge or evasions. With this great 
principle thus firmly embedded in the constitution 
and honestly enforced, there need be no longer any 
fear as to the honesty and purity of our future elec- 
tions." The Supreme Court, in Williams V8. Missis- 
sippi (1898), and Giles vs. Teaaley (1908), declined 
to go behind the innocent phraseology of the clauses, 
and refused to overthrow them. 

Before the courts had shown their unwillingness 
to interfere. Congress had done the same. Two meth- 
ods of redress were discussed during the years of 
Republican ascendancy, 1889-91. One of these con- 
templated a reduction of the Southern representation 
in the House, imder that part of the Fourteenth 
Amendment that requires such reduction in proper^ 
tion to the number of citizens who are disfranchised. 
Although urged angrily more than once, this action 
was not taken, and would not have affected cases in 
which the denial was by force and not by law. To meet 
the former situation the Bepublican party pledged 
itself in 1888. A Force BiU, placing the control of 
Southern elections in federal hands was considered. 



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THE NEW SOUTH 201 

It reoeived the enthusiastic support of Henry Cabot 
Lodge, and was the occasion for another waving of 
the ^^ bloody shirt/' It passed the House, with the 
aid of Speaker Beed, but in the Senate was aban- 
doned by the caucus and allowed to die in 1891. The 
South was left alone with its negro problem. In 
the words of a Southern governor, «« There are only 
two flags — the white and the black. Under which 
will you enlist?" 

The New South removed the negro from politics, 
but he remained, in industry and society, a problem 
to whose solution an increasing attention was paid. 
At the time of emancipation he was almost universally 
illiterate and lived in a bankrupt community. North- 
em philanthropy saw an opportunity here. The teach- 
ers sent south by the Freedmen's Bureau stirred up 
interest by their letters home. In 1867 George Pea- 
body, already noted for his benefactions in England 
and in Baltimore, created a large fund for the relief 
of illitera<7 in the destitute region. His board of 
trustees became a clearing-house for educational ef- 
forts. Ez>-President Hayes became, in 1882, the head 
of a similar fund created by John F. Slater, of Con- 
necticut. Through the rest of the century these 
boards, in dose cooperation, studied and relieved the 
educational necessities of the South. In 1901 the 
men who directed them organized a Southern Edu- 
cational Board for the propagation of knowledge, 
while in 1903 Congress incorporated a General Ed- 
ucation Board, to which John D. Eockef eller gave 
many millions for the subsidizing of educational 
attempts. 



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20* THE NEW NATION 

The negro advanced in literacy under the pressure 
of the new influences. In 1880 seventy per cent of 
the American negroes over ten years old were illit- 
erate, but the proportion was reduced in the next 
ten years to fifty-seven per cent ; to forty-five per 
cent by 1900 ; and to thirty per cent by 1910. As 
the negro advanced, his own leaders, as well as his 
white friends, differed in the status to which they 
would raise him and in the methods to be pursued. 
Some of his ablest representatives, W. E. B. DuBois 
among them, resented the discrimination and disfran- 
chisement from which they suffered, and insisted 
upon equality as a preliminary. Others, like Booker 
T. Washington, who founded a notable trade school 
in Alabama in 1881, worried little over discriminap 
tion, and hoped to solve their problem through com- 
mon and technical education which might lead the 
race to self-respect and independence. 

Friction increased between the races at the South 
after emancipation. Freedom and political pressure 
demoralized many of the negroes, whose new feel- 
ing of independence exasperated many of the whites. 
Southern society still possessed many border traits. 
Men went armed and fought on slight provocation. 
The duel and the public assault aroused little seri- 
ous criticism even in the eighties, and the freedmen 
lived in a society in which self-restraint had never 
been the dominant virtue. In Alabama, in 1880, the 
assessed value of guns, dirks, and pistols was nearly 
twice that of the Ubraries and five times that of the 
farm implements of the State. The distribution of 
the races varied exceedingly, from the Black Belt, 



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THE NEW SOUTH iOS 

where in the Yazoo bottom lands the negroes out- 
numbered the whites fifteen or more to one, to the 
uplands and mountains, where the proportions were 
reversed. But everywhere the less reputable of both 
races retarded society by their excesses. 

In spite of its imsolvable race problem the South 
was reviving in the eighties and was changing under 
the influence of the industrial revolution. Northern 
capital was a mainstay of its agriculture. Transporta- 
tion, manufacture, and city development found stim- 
ulation from the same source. In 1884 the National 
Planters' Association promoted a celebration of the 
hundredth anniversary of the export of the first Amer- 
ican cotton. In a great exposition at New Orleans 
they showed how far the New South had gone in its 
development. 

In the twenty years after 1880 the South became 
a modem industrial community. Its coal mines in- 
creased their annual output from 6,000,000 tons to 
60,000,000 ; its output of pig iron grew from 397,000 
tons to 2,500,000 ; its manufactures rose in annual 
value from 1338,000,000 to $1,173,000,000, with a 
pay roll swelling from $76,000,000 to $350,000,000. 
The spindles in its cotton mills were increased from 
610,000 to 4,298,000. With the industrial changes 
there came a shifting of Southern population. The 
census maps show a tendency in the black population 
to concentrate in the Black Belt, and in the white 
population to increase near the deposits of coal and 
iron. Factory towns appeared in the Piedmont, where 
cheap power could be obtained, and drew their oper- 
atives from the rural population of the neighbor- 



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«M THE NEW NATION 

hood. Unembarrassed by the child-labor and factory 
laws of the North, the new Southern mills exploited 
the women and children, and were consuming one 
seventh of the cotton crop by 1900. In Alabama, 
Birmingham became a second Pittsburg. 

The Southern railway system was completely re- 
built after the Civil War. In 1860 it included about 
one third of the thirty thousand miles of track in the 
United States, but war and neglect reduced it to 
ruin. Partly under federal auspices it was restored 
in the later sixties. After 1878 it suddenly expanded 
as did all the American railway systems. 

Texas experienced the most thorough change in 
the fifty years after the Civil War. From 807 miles 
her railways expanded to more than 14,000 miles. 
Only one of the Confederate States, Arkansas, had 
a slighter mileage in 1860, but in 1910 no one had 
half as much as Texas. The totals for the Confed- 
erate area rose from 11,000 miles in 1870 to 17,000 
in 1880, to 86,000 in 1890, to 45,000 in 1900, and 
to 68,000 in 1910. After 1880 no Confederate State 
equaled Texas, whose vast area, suddenly brought 
within reach of railway service, poured forth cotton 
until by the end of the century she alone raised one 
fourth of the American crop. Through the expand- 
ing transportation system the area of profitable cot- 
ton culture rose more rapidly than the demand for 
cotton, and in overproduction may be found one of 
the reasons for the decline in cotton values in the 
early nineties. In the decline may be found an in- 
centive toward diversified agriculture. When cotton 
went down, farmers tried other crops. The corn 



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THE NEW SOUTH 205 

acreage in the ten cotton States passed the cotton 
acreage before 1899, and with the diversification 
came no decrease in the total cotton output, but an 
increase in general agricultural prosperity. In many 
regions fruit culture and truck-raising forced their 
way to the front among profitable types of agricul- 
ture. 

In spite of the changes in industry and transpor- 
tation the South remained in 1910 a rural commu- 
nity when compared with the rest of the United 
States. Out of 114 cities of 50,000 population in 
1910, only 15 were in the Confederate area. But 
when compared with its own past the South was de- 
yeloping cities at a rapid rate. Only New Orleans 
and Richmond, in 1880, had 50,000 inhabitants. 
Atlanta, Charleston, Memphis, and Nashville were 
added to this class by 1890. Texas had no city of 
this size until 1900. But in 1910 she possessed 
four, Dallas, Forth Worth, Houston, and San An- 
tonio. As the cities increased in number, bound to- 
gether, and bound to the cities of the rest of the 
United States by the ties of trade and society, the 
localisms of the South diminished. The essential 
fear of negro control remained untouched, but in 
superficial ways the Southerner came to resemble 
his fellow citizen of whatever section. 

The sectionalism which had made a political unit 
of the South before the war was weakened. In the 
tariff debates of 1883 and later a group of South- 
ern protectionists made common cause with Northern 
Republicans. Sugar, iron, and cotton manufactures 
converted them from the old regional devotion to 



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206 THE NEW NATION 

free trade. A fear of national power had kept the 
old South generally opposed to internal improve- 
ments at the public cost. The Pacific railroads had 
been postponed somewhat because of this. But this 
repugnance had died away, and in the Mississippi 
Biver the United States found a field for work that 
was welcomed in the South. 

The Mississippi never fully recovered the domin- 
ance that it had possessed before the war, but it re- 
mained an important highway for the Western cot- 
ton States. The whimsical torrent, washing away 
its banks, cutting new channels at wiU, flooding 
millions of acres every spring, was too great to be 
controlled by States that had been impoverished by 
war and reconstruction. In 1879 Congress created 
a Mississippi River Commission. Unusual floods in 
1882 attracted attention to the danger, and there- 
after Congress found the money for a levee system 
that restrained the river between its banks from 
Cairo to the Gulf. 

The mouth of the river, always choked by mud 
flats, was opened by the United States in 1879. A 
Western engineer, James B. Eads, devised a scheme 
by which the current scoured out its own channel 
and converted itself into an ocean-going highway. 
He had already proved his power over the Father of 
Waters by building the railroad bridge that was 
opened at St. Louis in 1874. In 1892 other en- 
gineers completed a bridge at Memphis. 

The active development of the New South less- 
ened the difference between it and the rest of the 
United States, and brought it within the general in- 



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THE NEW SOUTH 207 

dustrial revolution. By 1884 the trend was not no- 
ticeable. By 1890 the white population had divided 
over a political issue like the North and West. In 
the years immediately following 1890 Populism was 
as much a problem in the South as anywhere. 

BIBLIOGRAPHICAL NOTE 

Most of the books relating to the South are partuaD. The 
most useful economic analyses are to be found in the writings 
of W. L. Fleming, U. B. Phillips, and A. H. Stone. Special 
points of view are presented in A. B. Hart, The Southern South 
(1911), E. 6. Murphy, Problems of the Present South (1904), 
£. A. Alderman and A. C. Gordon, Life of J. L. M, Curry 
(1911), J. L. M. Curry, A Brief Sketch of George Peahody 
(1898), J. E. Cutler, Lynch Law (1905), B. T. Washington, Up 
from Slavery (1905), W. E. B. DuBois, Souls of Black Folk 
(1903), and J. L. Mathews, Remaking the Mississippi (1909). 
The Annual Cyclopaedia is full of useful details. The Annual 
Beports of the Peabody Fund, the Slater Fund, and the United 
States Commissioner of Education contain statistics and dis- 
cussions upon Southern society. The Ciyil Rights Cases (109 
U.S. Reports) give the best treatment of the legal status of 
the negro, and are supplemented by J. C. Rose, ** Negro Suf- 
frage ** (in American Political Science RevieWy vol. i, pp. 17-43, 
— a partial sketch only), and J. M. Mathews, Legislative atid 
Judicial History of the Fifteenih Amendment (in Johns Hopkins 
Uniyersity Studies, yoL xxvn). There were interesting ar- 
ticles on the New Orleans Exposition, by E. Y. Smalley, in the 
Century Magazine for April and May, 1885. 



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CHAPTER Xni 

POPULISM 

The election of 1890 stunned and bewildered 
both old parties. The Bepublicans lost their control 
of the Lower House, while the Democrats paid for 
their victory the price of a partial alliance with a 
new movement whose weight they could only esti- 
mate. Populism was engendered by local troubles 
in the West and South, but its name now acquired 
a national usage and its leaders were encouraged to 
attempt a national organization. 

In a series of conventions, held between 1889 and 
1892, the People's Party developed into a finished 
organization with state delegations and a national 
committee. At St. Louis, in December, 1889, the 
Farmers' Alliance held a national convention and 
considered the basis for wider growth. The out> 
come was an attempt to combine in one party or- 
ganized labor, organized agriculture, and believers 
in the single tax. The leaders of the Knights of 
Labor and the American Federation of Labor were 
not averse to such common action, although the lat- 
ter preferred their own Federation to any party. 
The dangers of political action, seen in the decline 
of the National Labor Union of 1866, did not check 
the desires of the Knights in 1889, although the 
leaders found it easier then, as later, to promise the 



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POPULISM 209 

support of organized labor than to deliver it at 
the polls. After the St. Louis Convention the name 
Farmers' Alliance merged into the broader name of 
the People's Party, though the attempt to win the 
rank and file of the unions failed. 

In December, 1890, the farmers met at Ooala, 
Florida, to rejoice over the congressional victory and 
to plan for 1892. Since each of the great parties was 
believed to be indifferent to the people and corrupt, 
a permanent third parly was a matter of conviction, 
and in May, 1891, this parly was formally created 
in a mass convention at Cincinnati. Miscellaneous 
reforms were insisted upon here, but were over- 
shadowed by the demands of the inflationists. James 
B. Weaver, of Iowa, the old presidential candidate 
of the Greenbackers, was a leading spirit at Cin- 
cinnati. His besirknown aide was Ignatius Donnelly, 
of Minnesota, a devotee of the Baconian theory and 
of the ** Lost Atlantis," who was now devoting his 
active mind to the support of free silver. A national 
committee was created after another meeting, at St. 
Louis in February, 1892, and on July 2, 1892, the 
party met in that dtj in its first national nominat- 
ing convention. 

The platform of the People's Party was based on 
calamily . ^ We meet in the midst of a nation brought 
to the verge of moral, political, and material ruin," 
it declared. ^ Corruption dominates the ballot>box, 
the legislature, the Congress, and touches even the 
ermine of the bench. The people are demoralized. 
• • . The newspapers are largely subsidized or muz- 
zled; public opinion silenced; business prostrated; 



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810 THE NEW NATION 

our homes covered with mortgages ; labor unpoTei^ 
ished ; and the hmd ooncentratmg in the hands of the 
capitalists/' 

The greatest of the evils in sight was ^^ the vast 
conspiracy against mankind/' which had demone- 
tized silver, added to the purchasing power of gold, 
and abridged the supply of money ^^to fatten usu- 
rers/' To correct the financial evils the platform de- 
manded ^* the free and unlimited coinage of silver at 
the present legal ratio of sixteen to one," and an 
issue of legal-tender currency until the circulation 
should reach an average of fifty dollars per capita. 
Postal savings banks, a graduated income tax, and 
economy in government were the subsidiary de- 
mands. 

No demand of the Populists attracted so much 
attention as this for free silver, but its platform 
touched reform at every angle. In the field of trans- 
portation it asked for government ownership of rail- 
roads, telegraphs, and telephones. It asked that land 
monopolies be prevented, that the public lands be 
in part regained, and that alien ownership be for- 
bidden. It wanted the Australian ballot, liberal pen- 
sions, restriction of immigration, an eight-hour day, 
a single term for President and Vice-President, 
direct election of United States Senators, abolition 
of the Pinkerton detectives, and was curious about 
the initiative and ref erendmn. It was in many re- 
spects a prophecy as to the workings of reform for 
the next twenty years. 

The People's Party entered the campaign of 1892 
with this platform and with the support of advanced 



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POPULISM 211 

reformers, with a considerable following in the West 
and South, and with James B. Weaver and James 
G. Field as candidates. Few of the workers for its 
ticket were politicians of known standing, and its 
voters had a preponderance of youth. In several 
Western States the Democratic party supported it 
with fusion tickets. In the South it often cooperated 
with the Republicans. From the first the third party 
found it harder to stand alone than to unite with the 
weaker local party. 

The disrupting force of hard times was increased 
by the acts of the Bepublican party. Harrison's first 
Congress had passed a series of laws that provoked 
opposition and criticism. The Interstate Commerce 
Law was still new when he took office. In quick 
succession in 1890 came the new States, and Okla- 
homa Territoiy, the Dependent Pensions Bill, the 
Sherman Anti-Trust Bill, the Silver Purchase Bill, 
and the McKinley Tariff. The dominant majority 
had used arbitrary methods to enforce its will and 
had given to its enemies more than one text. After 
1891 the Democratic majority in the House reduced 
the Administration to the political incompetence that 
had prevailed from 1883 to 1889. 

Benjamin Harrison gained little prestige as the 
result of the Administration. He had been nomi- 
nated for his availability, and the campaign songs had 
said as much of his illustrious grandfather, the hero 
of Tippecanoe, as of himself. His appointments had 
pleased neither the politicians nor the reformers, 
while there was much laughter at the presence in 
the offices of numerous personal friends and relatives. 



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212 THE NEW NATION 

The most notable of his appointments was the most 
embarrassing. 

James G. Blaine, as Secretary of State, fonnd no 
topic in foreign relations as interesting as the canal 
had been in his earlier term. The wranglings with 
Great Britain and Germany over their treatment of 
naturalized Americans had subsided. The fisheries of 
the North Atlantic had been temporarily settled by 
President Cleveland. The regulation of the seal fish- 
eries of Bering Sea brought no new glory to Blaine. 

There was no doubt that the seal herd of the Pa- 
cific was being rapidly destroyed by careless and 
wasteful hunters from most of the countries border- 
ing on that ocean. On the American islands the 
herds could be protected, and here they gathered 
eveiy summer to mate and breed. But the men who 
hunted with guns at sea, instead of with dubs on 
land, could not be controlled unless the world would 
consent to an American police beyond the three-mile 
limit. In an arbitration with Great Britain, at Paris, 
Blaine tried to prove that the seals were American, 
and entitled to protection on the high seas, and that 
the waters of the northern Pacific were mare davr 
sum. The arbitration went against him on every 
material point. 

The only episode that threatened war occurred in 
Chile. Here Harrison had sent as Minister Patrick 
Egan, a newly naturalized Irishman and follower of 
Blaine. In a revolution of 1891 Egan sided with the 
conservative party that lost. His enemies charged 
him with improper interest in contracts and with 
instinctive antagonism to British interests in Chile. 



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POPULISM £18 

After the revolution a mob in Valparaiso showed its 
dislike for Americans by attacking sailors on shore 
leave. Egan's extreme demands for summary pun- 
ishment of the rioters were upheld by Harrison, who 
prepared the navy for war. Finally the Chilean Gov- 
ernment was forced to make complete apologies. 

In the same year an American mob in New Orleans 
lynched several Italians, and Blaine repelled with 
indignation the demand that indemnity be accorded 
before trial and conviction. He could not even prom- 
ise trial because of the helplessness of the United 
States in local criminal proceedings. The Italian 
Minister, Baron Fava, was withdrawn from Wash- 
ington on this account, and returned only when Con- 
gress had healed the breach by making provision for 
the families of the suifferers. 

The internal relations of the Administration were 
not happier than the external. Harrison chafed under 
the influence of Blaine, and alienated so many of the 
regular Bepublican leaders that it became doubtful 
whether he could secure his own renomination. Both 
Quay and Piatt had been offended, and the former 
had resigned his chairmanship of the National Com- 
mittee aft^ the failure of a political bank in Phila- 
delphia. No one was anxious to manage the Pre- 
sident's campaign, and he showed little skill in 
managing it himself. The future was still in doubt 
when, on June 4, 1892, three days before the meet- 
ing of the convention at Minneapolis, Blaine resigned 
his position without a word of explanation. Whether 
he was only sick and unhappy, or whether he desired 
the nomination, was uncertain. 



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214 THE NEW NATION 

The strength of Blaine and the rising inflaence 
of William McKinley were apparent in the Repub- 
lican Convention. Harrison was renominated on the 
first ballot, but Blaine and McKinley received more 
than one hundred and eighty votes apiece. The 
former had reached the end of his career, and died 
the next winter. The latter was now Governor of 
Ohio. McKinley had lost his seat in the election of 
1890, but had been raised to the governorship in 
the next year. He was chairman of the convention 
that renominated Harrison, reaffirmed the ^^ Amer-^ 
ican doctrine of protection," and evaded the issue of 
free silver. 

The Democratic party had bred no national 
leader but Grover Cleveland since the Civil War, 
and he had earned the dislike of the organization 
before his defeat in 1888. His insistence upon the 
tariff offended the protectionist wing of his party, 
and he left office unpopular and lonely. He retired 
to New York City, where he took up the practice 
of law and regained the confidence of the people. 
Demands upon him for public speeches in 1891 re- 
vealed the recoveiy of his popularity. His friends 
began to organize in his behalf during 1892, and 
David B. Hill aided by his opposition. 

The strength of Hill, who had been elected Gov- 
ernor of New York, and who was now Senator, was 
based upon Tammany Hall and those elements in 
the New York Democracy that reformers were con- 
stantly attacking. He was believed to have defeated 
Cleveland in 1888 by entering into a deal with the 
Eepublican machine by which Harrison received the 



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POPULISM 815 

electoral and he the gubernatorial vote of New York. 
Early in 1892, as interest in Cleveland revived, Hill 
called a ^^ snap " convention and secured the indorse- 
ment of New York for his own candidacy. The solid 
New York delegation shouting for Hill was an item 
in Cleveland's favor at the Democratic Convention 
in Chicago. With tariff reformers in control, de- 
nouncing '^ Republican protection as a fraud, a rob- 
beiy of the great majority of the American people 
for the benefit of a few," and reasserting Cleveland's 
phrase that ^^ public office is a public trust," the 
convention selected Cleveland and Adlai E. Steven- 
son, of Illinois, as the party candidates. Its coinage 
plank, like that of the Republicans, meant what the 
voter chose to read into it. 

There were two debates in the campaign of 1892. 
On the surface was the renewed discussion of the 
tariff, with the Republicans fighting for the McKin- 
ley Bill all the more earnestly because there was 
danger of its repeal, and the Democrats officially de- 
manding reduction. ^^ I would rather have seen Cleve- 
land defeated than to have had that fool free-trade 
plank adopted," said one of the Eastern Democrats 
to " Tom " Johnson after the convention. But the 
Democratic protectionists were forced into surly ac- 
quiescence so long as Cleveland was the candidate 
and William L. Wilson the chairman of the con- 
vention. The partial insincerity of the tariff debate 
aided the Populists, who were directing a discussion 
upon the general basis of reform. 

Cleveland was elected with a majority of electoral 
votes and a plurality of popular votes, but the vote 



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816 THE NEW NATION 

for Weaver and Field measured the extent of the 
revolt against both parties. The Populists carried 
Colorado, Idaho, Nevada, and Kansas, gained twenty- 
two electoral votes, and polled over a million popular 
votes. Their protest, based on local hard times and 
discontent, probably defeated Harrison, while their 
organization was ready to receive a large following 
should the hard times spread. 

Harrison was not unwilling to surrender the Gov- 
ernment to Cleveland in March, 1893, for he had 
been struggling for weeks to conceal the 6naneial 
weakness of the United States and to avoid a panic 
The great surplus that had been a motive for legis- 
lation for more than ten years had nearly become a 
deficit. Continuous prosperity had tempted Congress 
to make lavish appropriations. The McKinley Bill 
had reduced the revenue through changes in the 
sugar schedule. The Pension Bill had used other 
millions. Internal improvements had been dislaributed 
to every section. The surplus, which had been at 
$105,000,000 for 1890, fell to $37,000,000 in 1891, 
and in the next two years to $9,900,000 and to 
$2,300,000. In the spring of 1893 the Treasury was 
so reduced that any unexpected shock might cause a 
suspension. Cleveland's first duty was with causes 
and cures. 

The surplus had been affected both by increase in 
expenditures and by decrease in revenues. The lat- 
ter had been due in part to the hard times, which 
had forced a curtailment of imports, with a result- 
ing shrinkage in tariff receipts. At the same time an 
increasing nervousness, based upon the deteriorar 



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POPULISM 217 

tion in quality of the assets of the United States, 
showed itself. The fear of free silver was hasten- 
ing the day of panic. 

Silver and gold had always been traditional Ameri- 
can coins, but since 1834 little of the former had 
been coined or circulated, while between 1862 and 
1879 neither variety of specie was ordinarily used as 
money. In 1873 a codification of coinage laws had 
omitted from the standard list the silver dollar, 
which had been unimportant for nearly forty years ; 
and when, shortly thereafter, the decline in the 
price of silver made its coinage at the ratio of six- 
teen to one profitable, it was impossible. The de* 
mand for a restoration of silver coinage began with 
the silver miners who desired a stimulated market 
for their output. Some believed coinage would raise 
the price of bullion ; others thought the Government 
would keep up the value of the silver coins, as it did 
the greenbacks, by redemption in gold. In 1878 a 
Eree Coinage Act, pushed by B. P. Bland, was con- 
Terted into the limited Bland-Allison Act. Under 
tiiis the Treasury bought the minimum amount of 
silver bullion (two million dollars' worth) every 
month for twelve years, and protested continually 
that the silver coined from it was increasing the 
burden of redemption on the gold reserve. As the 
price of silver fell farther, the demand of the miners 
increased, and toward 1890 it was reinforced by the 
demands of inflationists who desired it for another 
reason. 

In 1890 the free-silver movement was not political 
in the sense that parties had declared for or against 



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218 THE NEW NATION 

it. In each great party it had supporters, and few 
politicians were actively opposing it. A movement 
in its favor, with the support of the Senate, was re- 
shaped under the influence of Sherman, and became 
a law in July, 1890. Under this the Treasury was 
forced to buy 4,500,000 ounces of silver each month, 
and to pay for it in a new issue of treasury notes. 
For the next three years the United States kept at 
par with gold the Civil War greenbacks, the Bland- 
Allison silver dollars, and the treasury notes of 1890. 
Only by its constant willingness to pay out any 
form of money at the option of the customer could 
it prevent the Gresham Law from operating and the 
currency from declining to the bullion value of silver. 
Every creditor feared the establishment of the 
silver basis because of the loss which it would entail 
upon him. His dollars would shrink from their gold 
value to their silver value. A depreciated currency 
was bad enough when unavoidable, but the deliber- 
ate adoption of it would be frank repudiation. Con- 
tinually, after 1890, popular apprehension of this 
grew more acute, discouraging the undertaking of 
new enterprises and leading to the insertion of '^ gold 
clauses " in contracts. Gold was hoarded whenever 
possible. The receipts at the New York Custom- 
House, which had been mostly gold before 1890, 
contained less than four per cent of gold in the win- 
ter of 1892-93. As the Treasury found its expendi- 
tures nearing its receipts, and the proportion of gold 
in its assets lessening, business men were badly wor- 
ried over the future of the currency, and an actual 
limit of available capital appeared. 



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POPULISM 219 

For fourteen years there had been prosperity in 
the United States. Financial and economic disturb^ 
ances had been relatively slight, and every year had 
seen a greater business expansion than the last. In- 
vestment for permanent improvement had passed the 
amount of annual savings, and before 1893 the 
United States as a community had approached 
the point at which its economic surplus would be 
exhausted and an enforced liquidation would be 
due. As banks curtailed in 1893 to save themselves, 
stringency became general, and depression turned to 
panic. In April the gold reserve in the Treasury, on 
which the whole volume, of silver and paper de- 
pended, passed below $100,000,000, which business 
had come to regard as the limit of safety. In the 
summer Great Britain closed her Indian mints to 
silver and that bullion dropped farther in value. 
Before July there was panic and failure everywhere 
in the United States. 

Panic had been imminent before Harrison left 
office and remained for Cleveland to confront. Al- 
ready Cleveland had taken a solid stand against free 
silver and the silver basis. He saw in the Sherman 
Silver Purchase Act the most striking cause of dan- 
ger, and summoned Congress to meet in August, 
1893, to repeal it, while he maintained the gold re- 
serve for the next two years by borrowing on bonds. 
For the first time since the Civil War his party 
controlled every branch of the Government, yet it 
now met an issue on which it had not been elected 
and over which it broke to pieces. 

An angry miiioyity opposied the Message in which 



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220 THE NEW NATION 

develand described the financial dangers and de- 
manded the repeal of the Sherman Law. It was a 
sectional minority that included Western Bepresent- 
atives from both parties and many Democrats from 
the South. Men who had fought the Populists since 
1890 now fraternized with them and raised their 
strength beyond their hopes. The President refused 
compromise, even to save his party from destruction^ 
and found a majority for repeal among Easterners 
of both parties. The Sherman Law was repealed in 
November, and the liquidation following the crisis 
was effected during the next three years. 

It was a bad beginning for tariff revision, to split 
the party at its first session and to drive into opposi- 
tion those Democrats who were most genuinely in- 
terested in tariff reform. Cleveland had lost his 
influence with Western Democrats before the repeal 
of the McKinley Act was undertaken, and they, like 
the Populists, had decided that he was the tool of the 
corporations and the ^^ gold-bugs " of the East. The 
anti-corporation feelings of the West were increased 
by the accident which threw the corporations and 
the farmers into different sides upon the silver ques- 
tion. 

A tariff for revenue had been the winning issue 
in 1890 and 1892, and the Democratic organization 
was pledged to pass it. When Speaker Crisp made 
William L. Wilson chairman of the Committee on 
Ways and Means his act showed an intention to ful- 
fill the pledge, for which purpose Wilson brought in 
his bill early in the regular session of 1893-94. Like 
previous bills, this tariff was passed in the House, 



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POPUUSM 821 

rewritten in the Senate, and again changed in confer- 
ence committee. ^* The truth is," confessed Senator 
Cnllom long after, '^ we were all — Democrats as well 
as Bepublicans — trying to get in amendments in 
the interest of protecting the industries of our re- 
spective States." The surplus was no longer an argu- 
ment in favor of reduction. The free-trade arguments 
were flatly contradicted by a group of Democratic 
Senators under whose leadership the bill lost most 
of its reducing tendency. Out of doors the Bepub- 
licans attacked the measure and noisily charged it 
with having produced the panic of 1898. Fourteen 
years later a Bepublican President still described it 
as the measure *^ under the influence of which wheat 
went down below fifty cents." When it finally came 
to the President it was so little different from the 
McKinley Bill that he denounced it violently. He 
had tried in vain to hold his party to an honest re- 
vision, and now, in July, 1894, refused to sign the 
bilL It became a law without his signature. It con- 
tained no novelty but an income tax, which was a 
concession to the Populists and which the Supreme 
Court soon declared to be imccmstitutional. 

In the fight over the Wilson Bill, Cleveland af- 
fronted Eastern members of his party as he had the 
Western members, in 1898, over the Sherman re- 
peal In the summer of 1894 he offended the whole 
body of organized labor by intervening in a West- 
em strike. 

The panic of 1893 had unsettled labor and cre- 
ated a floating element among the unemployed. 
These drifted toward Chicago, attracted by the Co- 



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222 THE NEW NATION 

lumbian Exposition held there during that summer, 
and worried the police for many months. About 
Easter, 1894, an ««Army of the Unemployed" 
marched on Washington imder the command of 
Jacob S. Goxey. A few weeks later a strike occurred 
among the employees of the Pullman Palace Car 
Company. The American Railroad Union, under the 
leadership of Eugene V. Debs, established a sym- 
pathetic boycott against the Pullman cars. The 
Knights of Labor indorsed the strike, and railway 
travel was impeded over all the West. Around Chi- 
cago there was disorder and rioting which the Gov- 
ernor of Illinois, John P. Altgeld, did not suppress. 
He held the militia in readiness, but had not inter- 
vened when Cleveland sent federal troops to Chicago 
to remove obstructions to the carriage of the mails. 
This federal intervention offended those who still 
adhered to the doctrine of state rights, and angered 
the strikers and organized labor as a whole. They 
believed the President was a tool of the railroads, 
and believed the same of the courts when a federal 
judge issued an injunction to Debs forbidding him 
to interfere in the strike. In the end the strikers 
lost, leaving Cleveland's conduct in maintaining the 
peace in sharp contrast with that of the Populist 
Governor of Colorado, who intervened in a great 
miners' strike at Cripple Creek to arrest, not the 
strikers who had seized control of the mines, but the 
sheriff and his posse who wished to dislodge them. 
** It is better, infinitely better," Governor Waite had 
declared, ^^that the blood should flow to the horses' 
bridles than that our national liberties sbpnl4 bo 



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POPULISM 223 

destroyed." Congress made Labor Day a legal holi- 
day in 1894, but failed to placate the unions. 

By the summer of 1894 Cleveland's party was 
split beyond repair, and his friends were mostly 
among the Bepublicans. Consistent in his belief in 
sound money, tariff revision, and law and order, he 
had been forced by events to alienate the West, the 
East, and organized labor. His course had aided the 
Populist party by widening the belief that the Demo- 
crats had no interest in their welfare. The panic had 
aided it yet more, by multiplying the discontented 
who might be converted to the new faith. Every 
month the Populist party increased in strength, the 
East watching it with mingled fear and contempt 
and ignorance. The comic papers pictured as the 
typical Populist the raw-boned, booted, imkempt 
farmer, in shirt-sleeves and with flowing beard. It 
could not see the foundation of real reforms on 
which the movement stood. A satirist pictured the 
Populist as *^The Kansas Bandit," declaiming 

« The People's Party, to 
Which me native instinct draws me because it 
Loves the rule of mediocrity, is now on top. I 
Love the rule of Ignorance." 

BIBLIOGRAPHICAL NOTE 

F. J. Turner discussed ** The Problems of the West," in the 
Atlantic MonOdy for September, 1896, and C. Becker has in- 
terpreted a similar point of view under the title ** Kansas " in 
the Turner Essays (1910). Wildman and McYey are valuable 
guides. The external facts of the Populist movement are ac- 
cessible in the ilnnuaZ Cyclopaxlia; Sianwood, History of the 
Presidency ; Annual Reports of the Secretary of the Treasury ; 



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824 THE NEW NATION 

and Rioliaidsoii, Meisagei and Papers of the Presidents, Stan- 
daxd writings on the silyer problem are J. L. Laaghlin, His^ 
tary of BimetaUism in the United States (1886, etc.)» and F. 
W. TaoBsig, Silver Situation in (he United States (1893). Use- 
f al detailB are added in the biographies of Bbdne, Bland, Sher- 
maiit and Vance. W. £. Connelley, Ingalls of Kansas (1909), 
baa included much material npon Popnliem, indading £. 
Ware's satirical verses, Alonzo, or the Kansas Bandit, Light is 
thrown npon Governor J. P. Altgeld and his influence in the 
Democratic partj by B. Whitiook, ** Forty Years of It '' (1914), 
and C. Lloyd, Henry Demarest Lloyd. The Memoirs of a Varied 
Career, William F. Draper (1908), gives a glimpse of the rigid 
protectionist attitude. A stimulating novel, based upon muni- 
oipal politics in the ainetiesi is P. L. Ford's The Honorable 
Peter Sdrlmg (mfy 



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CHAPTER XIV 

FBBB SHiVEB 

Serious students of finance are almost unani- 
mous in their belief that the adoption of free silver 
would have brought into operation the Gresham Jjaw 
and would have resulted in a reduction of the yahie 
of the dollar. But the motives which divided ihe 
United States were less economic law than personal 
interest. The creditor foresaw the shrinkage of his 
property, and feared it. The debtor saw the lighten- 
ing of his debt, and easily convinced himself that the 
ethics of the case required such relief for him. 

It appeared to the West that the declining prices 
of the eighties had been due not so much to over- 
production and mechanical invention as to an ap- 
preciation of the dollar. The silver advocate claimed 
that the money supply was inadequate to the demands 
of increasing business, that the overworked dollars 
were acquiring a scarcity value, and that their in- 
crease in value was placing an unfair burden upon 
every person with a debt to pay. It was the old atti- 
tude of the Greenback Northwest, brought out by a 
period of debt and depression. In accounting for the 
scarcity of money the Act of 1873 seemed important 
to the West. The demonetization of silver became a 
crime, and justice from the Western standpoint de- 
manded the restoration of the dollar to its old 
value, — the value of its silver. Before 1898 the 



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226 THE NEW NATION 

discontent wba serious, but had not come to be the 
primary interest of the West. Men were not yet 
willing to leave their parties for the sake of silver. 
The panic drove them to the final step. 

Through the campaign of 1892 the major parties 
had dodged the issue of free silver by adopting eva- 
sive planks, while the general ignorance respecting 
the laws of money prevented the evasion from being 
seen. Until 1890 neither organization had been un- 
favorably disposed towards free silver and Congress- 
men catered to the movement when they dared. As 
its accomplishment became more probable, the selfish 
interests that would be adversely affected, and the 
economists who saw its theoretical danger, and the 
moralists who disliked repudiation, made common 
cause in a wide campaign of education. 

With the exception of extreme inflationists, all 
had declared that they wanted ^* honest " or *^ sound " 
money, and both parties insisted, in 1892, that all 
dollars, of whatever sort, must remain equal in value 
and interchangeable. They insisted, too, that silver 
must be used as well as gold, and neither platform 
saw that the demands were either inconsistent or 
improbable of realization. The pledge of equality 
pleased the creditor East, while that of equal use of 
both metals satisfied the debtor West and South. 

Bimetallism was a cry of many who disliked free 
silver, yet feared that a demand for the gold stand- 
ard would wreck the party. As long as the traditional 
ratio of sixteen to one remained the commercial ratio, 
thie free use of both metals was theoretically possible, 
but the experience of the United States showed that 



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OuKcni 



The Flood of Silver 

Gold and Silver Output 


/ 


24O,00O,00a 
220,000,000 
200,000,000 
180,000,000 
100,000,000 
140,000,000 


1861-1911 
In Ounces 

_ Iflfia. nn 7«M TOTA 


/ 




-^- OunoM 

•••••OWIMI 












nf 


J 








r 








/ 


\ 








/ 






100,000,000 
80,000,000 
00,000,000 
40,000,000 
20,000,000 






J 








/ 








r- 


Y 








JT- 








,•' 








• • 


••* 













1861 1871 1881 1891 1901 1911 



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828 THE NEW NATION 

a slight variation in the commercial ratio ineyitably 
drove the more valuable dollar into retirement and 
left the cheaper in use. The truth of Gresham's Law- 
was believed by most economists, who doubted whether 
the commercial ratio was ever sufficiently permanent 
to make bimetallism possible. With the silver de- 
clining rapidly it was out of the question. If the 
silver in circulation ever got beyond the power of the 
government to control it through redemption in gold 
nothing could avoid the silver standard. No law of 
the United States could prevent it. There was only a 
bare possibility that an international agreement 
always to regard sixteen ounces of silver as worth 
one ounce of gold might establish the ratio, but to 
this straw the bimetallist turned, trying to ward off 
the demand for free silver with his plea for interna- 
tional bimetallism. 

The panic of 1893, the decline of silver, and the 
repeal of the Sherman Law stimulated the activities 
of those who believed in free silver and produced 
formal steps to bring it into politics. A silver con- 
vention, held in Chicago in August, 1898, denounced 
the " Crime of 1873," and Governor Waite recom- 
mended to the Colorado Legislature that it open a 
mint of its own for the coinage of legal-tender silver 
dollars. At state conventions, in 1893 and 1894, 
both parties adopted silver planks. The Nebraska 
Democrats rejected such a plank in 1898, but in 
1894, after a caucus of free-silver Democrats in 
Omaha, they adopted a demand for the immediate 
restoration of free-silver coinage ^^ without waiting 
for the aid or consent of any nation on earth." 



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FREE SILVER 229 

At the oongressional election of 1894 the Republi- 
cans regained control of both Senate and House 
and many of the silver candidates were left at home. 
Some thirty, who had sat in the Fifty-third Congress, 
joined in March, 1895, in a call for the adoption of 
free silver as a party measure. To the iniquity al- 
leged to exist in the gold standard was added the 
aggravating fact that its defenders had wealth and 
were often directors of corporations. The measure 
had become a class contest. Its textbook was found 
in CokfCs Financial Schocl^ a little book with 
simple dialogue and graphic illustration, that popu- 
larized the Western view of free silver and reached 
hundreds of thousands with its apparent frankness. 
Free silver had by 1895 outgrown the Populists, 
and had overshadowed other measures of reform be- 
fore either party had taken a frank attitude respect- 
ing it. ^^ I have been more than usually despondent," 
wrote the originator of the Wilson Bill, who had 
lost his seat in 1894, ^« as I see how the folly of our 
Southern people, in taking up a false and destructive 
issue, and assaulting the very foundations of public 
and private credit, are throwing away the solid fruits 
of the great victory, solidifying the North as it never 
was solid in the burning days of reconstruction, and 
condemning the South to a position of inferiority 
and lessening influence in the Union she has never 
before reached." 

When the Fifty-fourth Congress met in 1896, 
Reed was again enthroned as Speaker, but the spread 
of silver sentiment had undermined party loyalty. 
Cleveland's annual Message contained the usual range 



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230 THE NEW NATION 

of items upon govemment and foreign relations, and 
devoted several pages to a r^um^ of the financial 
operations of the Treasury and the currency prob- 
lem. It closed with an appeal to the enthusiastic 
multitude that approved free coinage to reexamine 
their views ^^in the light of patriotic reason and 
fiuniliar experience." It gave no hint that any other 
topic was likely to pass free silver in the public view. 
Fifteen days later, on December 17, 1895, the Presi- 
dent sent a special Message to Congress, in reference 
to an old dispute between Grreat Britain and Vene- 
zuela, that startled the ^^orld, upset the stock mar- 
kets, and brought to life once more the Monroe 
Doctrine. 

For many years the unsettled boundary between 
Venezuela and British Guiana had been a source of 
irritation. The pretensions of both claimants were 
great and vague, while the continuous encroachment 
of British miners alarmed the weaker country. For 
nearly twenty years Venezuela had vainly appealed 
to the United States, asking that the dispute be ar- 
bitrated. The United States had taken a mild interest 
in the wrangle, but no one before Cleveland had felt 
vitally concerned. He imdertook, in the summer of 
1896, to persuade Great Britain to accept an ar- 
bitration, and pressed Lord Salisbury in a series 
of notes drafted by Bichard Olney, Secretary of 
State. 

The contention of Olney was that the dispute was 
suitable for arbitration because of the difference in 
physical strength between the two countries, and 
that the United States had an interest in an equita- 



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FREE SILVER 231 

ble territorial adjustment. He stated the doctrine 
that John Quincy Adams had advanced in the Ad- 
ministration of Monroe, that interference with the 
destiny of the South American Republics affects the 
United States, and asserted that this was now a part 
of the public law of the United States. He listed 
tine preoedents in which it had been adyanced since 
1828, finding none in which it had been flatly 
checked. His long arguments upon the interests 
and proper supremacy of the United States in all 
American questions failed to convince the British 
Foreign Office, which denied both Olney's correct- 
ness in applying the Monroe Doctrine and the bind- 
ing force of the doctrine itself. Arbitration was 
decUned, and Cleveland, in submitting the corre- 
spondence to Congress, urged that an American 
court be created to ascertain the true boundary and 
that the United States afterward maintain it. ^^ In 
making these recommendations," he admitted, ^* I am 
fully alive to the responsibility incurred and keenly 
reaUze all the consequences that may follow." 

The threat of war conveyed in the Message drove 
silver from the public mind. Business was aghast, 
and judicious publicists either questioned the value of 
fbe Monroe Doctrine or denied the propriety of its 
application. The general public supported the Presi- 
dent without question, but many of his closest ad- 
visers turned against him. His political enemies 
charged him with raising a foreign issue to reunite 
his party, or with creating a scare to help his specula- 
tions in stocks. Great Britain blustered in her press, 
but opened her archives to the American Venezuelan 



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232 THE NEW NATION 

G>mmission. In 1897 she allowed an arbitration to 
take place, and the affair passed over. 

Whatever Cleveland's motive in the Yeneznela 
Message, it did not establish more than a transient 
calm in either party. His own was doublj split by 
silver and the tariff, while Republican plans for 
1896 had become badly deranged. That party had 
organized to play upon protection, but found interest 
in its chosen subject silenced for the time. 

In spite of its defeats in 1890 and 1892, the Be- 
publican organization had kept up its fight for pro- 
tection. Quay had in 1888 completed the partnership 
between the manufacturers who had a cash interest 
in the tariff and the Republican voters. In manufac- 
turing communities the doctrine had been accepted 
that prosperity and protection went together. Ruin 
was prophesied if the Democrats should win. The 
panic of 1893 seemed to prove this, and when the 
Democrats passed the Wilson Bill the Republicans 
asserted that the fear of this had caused the panic. 
In private, the leaders agreed with the president of 
the Home Market Club, who wrote in his memoirs, 
" The bill . . . was much less destructive than there 
was reason to fear." " Our business was not unprofit- 
able during these lean yearsybut much less profitable 
than it had been and ought to have been." Prosperity 
was clearly lacking and to be desired, and among 
the candidates for the nomination in 1896 was the 
author of the McKinley Bill, in whom an Ohio 
cartoonist had discovered the " Advance Agent of 
Prosperity." 

Associated with the name of William McEinley, 



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FREE SILVER 2SS 

of Canton, Ohio, was that of Marcus Alonzo Hanna, 
a citizen of Cleveland who had acted on the bor- 
derland between business and politics since 1880. 
Hanna had been among the earliest to see the finan- 
cial interest of the manufacturers in the tariff and 
to capitalize it for political purposes. For several 
years he had collected money in Ohio for campaign 
funds, assessing the manufacturers according to 
their interests and impressing upon them the duty 
of paying on demand. It had been a business trans- 
action. Hanna had no extraordinary stake in the 
result, but combined a genuine interest in politics 
with business standards of the prevailing type. 
About 1890 he became a friend of the Ohio pro- 
tectionist and worked steadily thereafter for his elec- 
tion to the Presidency. 

McEduley was a tactful and successful Congress- 
man. He believed in the tariff, spoke convincingly 
in its favor, had few enemies and many warm friends, 
and was widely advertised by the Tariff Bill of 
1890. In public places after 1893 he was repeatedly 
hailed as the next candidate, but as the silver issue 
rose it appeared that there might be great difficulty 
in adapting his record to the new problem. He had 
favored bimetallism and free coinage in so many 
debates that the East, where lay the strongholds of 
the party, distrusted his soundness on the currency 
question. Yet if he abandoned free silver it was 
doubtful if he could hold the West. For months 
his friends, steered by Hanna, who spent his own 
money freely, endeavored to keep the tariff in the 
foreground, while the candidate preserved a discreet 



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8S4 THE NEW NATION 

and exasperating silence upon the dominant issue of 
free silver. 

The most important rivals of McEanley for the 
nomination were Harrison and Beed, but neith^ of 
these possessed a manager as shrewd and resourceful 
as Hanna. McEinley was nominated on the first 
ballot at St. Louis, with Grarrett P. Hobart, of New 
Jersey, a corporation lawyer who believed in the 
gold standard, as his associate. 

The nature of the Bepublican platform had been 
in debate throughout the spring of 1896. The 
organization was reluctant to take up the silver issue 
and the predetermined candidate was uncertain upon 
it. In the Platform Committee there was a contest 
involving the opportunists, who wanted to continue 
the policy of evasion ; the Westerners, who felt that 
silver meant more to them than the party ; and the 
representatives of the populous commercial East, 
who were devoted to the gold standard. Bimetallists 
had progressed in their education until most of them 
saw that bimetallism must be international if it 
could be at all. Various committeemen later assmned 
the credit for the plank that was finally adopted. 
After castigating the Democrats for producing the 
panic and renewing the pledge for protection, the 
party denounced the debasement of currency or 
credit. It opposed the free coinage of silver, asserted 
that all money must be kept at a ^'parity with 
gold,'' and pledged itself to work for an international 
agreement for bimetallism. 

The fight for free silver was carried by the silver 
state delegations to the floor of the convention, where 



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FREE SILVER 2S5 

it was defeated by a vote of 818^ to 105^. At this 
point, led by Senators from Colorado and Utah, 
thirty-four members withdrew from the convention 
in protest. Even the Prohibition party had already 
been broken by the new issue. The humorous weekly, 
Life^ spoke seriously when it declared that ^ The 
two great parties in the country at this writing are 
the Gold party and the Silver party. The old parties 
are in temporary eclipse." Few were satisfied with 
the Republican result, for while the platform pointed 
one way and the candidate's career pointed the other 
on free silver, the real interest of the party, pro- 
tection, aroused no enthusiasm. 

No Democrat was the predetermined candidate of 
his party when it met at Chicago in July, 1896. 
Cleveland, least of all, was not given even the scanty 
notice of a commendatory plank. He stood alone as 
no other President had done, at issue with the Re- 
publicans on their major policy, yet without followers 
in his own organization. Slow, patient, courageous, 
stubborn, he had twice held his party to its promise, 
and he had refused to be carried away by the tran- 
sitory demand of the West for dangerous finance. 
He had guided the National Administration through 
eight years of expansion and reorganization, and had 
been a devoted servant of civil service reform. In 
May, 1896, he had aggravated his offenses in the 
eyes of the politicians by issuing new rules that ex- 
tended the classified service to include some 81,000 
new employees, making a total of 86,000 out of 
178,000 federal employees. He passed out of party 
politics at least two years before his term expired. 



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930 THE NEW NATION 

and in 1897 he took up his final abode in Princeton. 
From Princeton he wrote and spoke for eleven years, 
and before he died in 1908 the animosities of 1896 
were forgotten, and he looked large in the American 
mind as a statesman whose independence and sin- 
cerity were beyond reproach. 

Forces beyond the control of politicians carried 
the Democrats toward an alliance with Populism 
and free silver. As two minority parties they had 
felt in 1892 a tendency to fuse against the Repub- 
licans. By conviction ^ey were both obliged to fight 
the party of Hanna and McKinley, in which the 
forces of business, finance, and manufacture were 
assembled in the joint cause of protection and the 
gold standard. It was convenient to make this fight 
in close alliance, the more so because the Populist 
doctrine of free silver had permeated the Democratic 
organization in the West and South. In the conven- 
tions of 1896 more than thirty States, as Nebraska 
had done in 1894, asked for immediate free coinage, 
and a majority of the Democratic delegates were 
pledged to this before they came to Chicago. They 
gained control of the convention on the first vote, 
determined contests in their own favor, and offered 
a plank demanding '^ the free and unlimited coinage 
of both silver and gold at the present legal ratio of 
sixteen to one without waiting for the aid or consent 
of any other nation." 

The debate on the silver plank was long and bit- 
ter, although its passage was certain. It was closed 
by the leader of the Nebraska delegation, William 
Jennings Bryan, who had been a former Congress- 



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FBEE SILVER 287 

maa, and who later said, ^^ An opportunity to dose 
such a debate had never come to me before, and I 
doubt if as good an opportunity had ever come to 
any other person during this generation/' He took 
advantage of the moment, in a tired convention that 
had been wrangling in bitterness for several days, that 
had deserted the old politicians, and that had no 
candidate. He was only thirty-six years old, his face 
was unfamiliar, and his name had rarely been heard 
outside his State, but he had been preaching free 
silver with religious intensity and oratorical skill. 
His speech had grown through repeated speaking, 
and reached its climax as he pleaded for free silver : 
^* If they dare to come out in the open field and de- 
fend the gold standard as a good thing, we will fight 
them to the uttermost. Having behind us the pro- 
ducing masses of this nation and the world, supported 
by the commercial interests, the laboring interests, 
and the toilers everywhere, we will answer their 
demand for the gold standard by saying to them : 
You shall not press down upon the brow of labor 
this crown of thorns ; you shall not crucify mankind 
upon a cross of gold." Swept off its feet by the en« 
thusiasm for silver, and having no other candidate 
in view, the convention nominated Bryan on the fifth 
ballot, selecting Arthur Sewall, of Maine, as his com- 
panion. 

The Populists met in St. Louis on July 22. '^ If 
we fuse, we are sunk," complained one of the most 
devoted leaders; "if we don't fuse, all the silver 
men will leave us for the more powerful Democrats." 
Fusion controlled the convention, voting down the 



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288 THE NEW NATION 

*^ Middle-of-tbe-Boad " groap that adhered to inde- 
pendenoe. Bryan was nominated, although Sewall 
was rejected for Thomas E. Watson, of Georgia. 
The organization of the People's Party continued 
after 1896, but its vitality was gone forever. 

The campaign of 1896 was an orgy of education, 
emotion, and panic. McKinley was driven by the 
opposition to defend the gold standard with increas- 
ing intensity. Protection ceased to arouse interest 
and other issues were forgotten. The Bryan party 
attracted to itself the silver wings of the Republicans 
and Prohibitionists, and absorbed the Populists. The 
gold Democrats, after several weeks of indecision 
as to tactics, became bolters, held a convention at 
Indianapolis in September, and nominated John M. 
Palmer and Simon Buckner. To this ticket, Cleve- 
land and his Cabinet gave their support. Up and 
down the land Bryan traveled, preaching his new gos- 
pel, which millions regarded as ^^ the first great pro- 
test of the American people against monopoly — the 
first great struggle of the masses in our country 
against the privileged classes." ^^ Probably no man 
in civil life," said the Nation at the end of the fight, 
^has succeeded in inspiring so much terror without 
taking life." 

As chairman of the National Committee, Marcus 
A. Hanna directed the Republican campaign. He 
encouraged the belief that Bryan was waging a 
*< campaign against the Ten Commandments." He 
drew his sinews of war from the manufacturers, who 
were used to such demands, and from a wide range 
of panic-stricken contributors who feared repudia- 



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FREE SILVER 239 

tion. Insurance companies and national banks were 
assessed and paid with alacrity. The funds went into 
the broadest campaign of education that the United 
States had seen. 

In contrast to the activity of Bryan, McKinley 
stayed at home through the summer, and delegations 
from afar were brought up to his veranda at Canton, 
Ohio. To these he spoke briefly and with dignity, 
gaining an assurance that grew with the campaign. 
His arguments were taken over the country by a 
horde of speakers whom Hanna organized, who 
reached and educated every voter whose mind was 
open on the silver question. In the closing days of 
the campaign panic struck the conservative classes 
and produced for Hanna campaign funds such as 
had never been seen, and cries of corruption met the 
charges of repudiation. 

An English visitor in New York wrote on the 
Sunday before election : ** Of course nothing can be 
done till Wednesday. All America is aflame with 
excitement — and New York itself is at fever heat. 
I have never seen such a sight as yesterday. The 
whole city was a mass of flags and innumerable Se- 
publican and Democratic insignia — with the slareets 
thronged with over two million people. The whole 
business quarter made a gigantic parade that took 
seven hours in its passage — and the business men 
alone amounted to over 100,000. Every one — as, 
indeed, not only America, but Grreat Britain and all 
Europe — is now looking eagerly for the final word 
on Tuesday night. The larger issues are now 
clearer: not merely that the Bryanite fifty-cent 



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S40 THE NEW NATION 

dollar (instead of the standard hundred-cent) would 
have far-reaching disastrous effects, but that the 
whole struggle is one of the anarchic and destructive 
against the organic and constructive forces." 

The vote was taken in forty-five States, Utali 
having been admitted early in 1896, and no elec- 
tion had evoked a larger proportion of the possible 
vote. Bryan received 6,500,000 votes, nearly a 
million more than any elected President had ever 
received, but he ran 600,000 votes behind McKin- 
ley. The Republican list included every State north 
of Virginia and Tennessee, and east of the Missouri 
Kiver, except Missouri and South Dakota. The 
solid South was confronted by a solid North and 
East, while the West was divided. McKinley re- 
ceived 271 electoral votes ; Bryan, 176. 

Education played a large part in the result, and 
economic opinion believes that the better cause pre- 
vailed. But cool analysis had less effect than emo- 
tion and self-interest at the time. The lowest point 
of depression had been reached during 1894, while 
the harvests of 1896 and 1896 were larger and 
more profitable than had been known for several 
years. Free silver was a hard-times movement that 
weakened in the face of better crops. ^^Oive us 
good times," said Beed to Bichard Watson Oilder, 
<^and all will come out right." Inflation was not 
to be desired by the citizen who had in hand the 
funds to pay his debts. When he became solvent he 
could understand the theories of sound finance. It 
is probable that nature as well as gold was a i>otent 
aid to Hanna in procuring the result. 



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FREE SILVER 241 

William McKinley was adyertised as the ^^Ad- 
yance Agent of Prosperity," and before he was 
inaugurated in March, 1897, prosperity was in 
sight. His election had destroyed all fear that the 
currency would be upset by legislatiye act, while 
the liquidation after the panic of 1893 had nearly 
run its course. Business was reyiying, crops were 
improying, and the luckless farmers of the Western 
plains had abandoned their farms or learned how to 
use them. After 1896 the financial danger was not 
silyer but gold inflation. In that year great mines 
were opened in Alaska, drawing heayy immigration 
to the yalley of the Yukon and, a little later, to the 
beach at Nome. Other discoyeries increased the gold 
output and flooded the world with the more precious 
metal. By 1900 prices were rising instead of fall- 
ing, and public interest was turned upon the high 
cost of liying rather than the low prices of the pre- 
yious period. The ayerage annual output of gold for 
the fifteen years ending in 1896 was $132,000,000. 
For the fifteen years beginning in 1896, it was 
$337,000,000. The election of McKinley was in 
name a yictory for the Republican party, but was in 
reality one for sound money. The organization upon 
which he stood was an amalgamation of creditors 
and manufacturers, reenf orced by gold-standard men 
of all parties. Without the aid of the last element 
he could hardly haye been elected, on this or any 
other issue. When he took office the Republican 
party had control in both houses of Congress, had 
been elected on a money issue, but had a permanent 
organization based upon the tarifiE propaganda. Be- 



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242 THE NEW NATION 

fore his inaugamtion, Hanna declared that the elec- 
tion was a mandate for a new protective tariff, and 
one of McKinley's earliest official acts was to sum- 
mon Congress to meet in special session, to fulfill 
that mandate, on March 16, 1897. 



BIBLIOGRAPHICAL NOTE 

The most pofmlar doeament m the fao e m I v ot profMigtiida 
wss W. H. Hsrrey, Com'9 Financial School (c. 1894). This 
was replied to by Horace White, CoinU Financial Fool ; or 
ike Artful Dodger Exposed (c. 1896) ; and the same author, in 
Money and BaiHang (4th ed., 1911), disensses the eocn^omics 
of free silyer. The best eoonomio arguments for free lilrer 
oame from the pens of Franeis A. Walker and E. Benjamin 
Andrews. The Reports of the International Monetary Con- 
ferences (at PariB, 1867 and 1881, and at Brussels, 1892) are 
useful upon the attempt to establish a currency ratio by inter- 
national agreement. There is no good biography of William 
MoKinley, although the external facts of his career may be 
obtained in the Annual Cydopcedia, and in Who's Who in 
America (a biennial publication which, since its first issue in 
1899-1900, has been the standard souree of biographical data 
concerning liying Americans). These may be strengthened by 
D. Magic, Life of QarreU A. Hobart (1910). The best biog- 
raphy of the period is H. Croly, Marcus AUmzo Hanna 
(1912), which gives an illuminating surrey of Republican 
politics, although based on only the public printed materials 
and personal recollections. The opposition may be studied in 
W. J. Bryan» The First Battle (1896). The platforms, as 
always, are in Stanwood, and there are useful narratives in 
Dewey, Latan^, Andrews, and Peck. From this period the 
Outlook (January, 1897), and the Independent (July, 1898), 
take on a modem magazine form and are to be added to the 
list of Taluable newspaper files, while the Literary Digest begins 
to play the part carried by NUes's Register in the early part of 
the century. They may generally be trusted as intelligent, 
honest, and reasonably independent. The Yenezoelan affair^ 



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FREE SILVER 243 

besides stimulating diplomatic correspondence (q,v.f in Foreign 
Kelations Reports), led to the writing of W. F. Beddaway, 
The Monroe Doctrine (1898), which is still one of the most 
judicioos discussions of the topic. J. B. Henderson, American 
DipUmaHc Questibfw (1901), is useful also. 



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CHAPTER XV 

THE " OOUNTBB-BBFORMATION " 

The mission of Populism did not end when free 
silver had been driven like a wedge into all the 
parties. Its more fundamental reforms outlasted 
both the hard times and the recovery from them. 
Although obscured by the shadow of the larger con- 
troversy, the reforms had been stated with convic- 
tion. The Populist party was not permitted to bring 
the reformation that it promised, but it stimulated 
within the parties in power a ^' counter-reformation," 
that was already under way. This counter-reforma- 
tion was largely within the Bepublican ranks be- 
cause that party dominated in every branch of the 
National Government for fourteen years after 1897, 
but it was essentially non-partisan. It derived its 
advocates from the generation that had been edu- 
cated since the Civil War, and many of its leaders 
bore the imprint of democratic higher education. 
It derived its materials from historical, economic, 
and sociological study of the forces of American 
society. 

Practical politics in America was at its lowest 
level in the thirty years after the Civil War. The 
United States was politically fatigued after the 
years of contest and turned eagerly to the business 
speculations that opened in every direction. Offices 



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THE "COUNTER-REFORMATION" 245 

were left to those who chose to ran them, while pub- 
lic scrutiny of public acts was materially reduced. 
The men in charge, imwatched in their business, 
used it often for personal advantage, and were aided 
in this by the character of both the electoral ma- 
chinery and the electorate. A multitude of offices 
had to be kept filled in every State and city by 
voters who could know little of the candidates and 
who accepted the recommendation implied in the 
party name. Control of the nominations meant con- 
trol of the elections, and was within reach of those 
who were persistent in attending caucuses and con- 
ventions and were not too scrupulous in manipulat- 
ing them. The laws against bribery at the polls did 
not touch corruption at the primaries. The cities, 
rapidly growing through manufactures and immi- 
gration, were full of voters who could be trained to 
support the "bosses" who befriended them. 

The American " boss " made his appearance in 
the cities about 1870. His power was based upon 
his personal influence with voters of the lower and 
more numerous class. Gaining control of party ma- 
chinery he dictated nominations and policies, and 
used the government, as the exposures of the Tweed 
Ring showed, to enrich his friends and to perpetuate 
his power. Caring little for party principle, he made 
a close alliance with the new business that continu- 
ally needed new laws, — building laws, transporta- 
tion laws, terminal rights, or franchises. From these 
allies came the funds for managing elections, and, 
too often, for direct bribery, although this last was 
necessary only rarely. 



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246 THE NEW NATION 

Exposures of the evil of boss government were 
frequent after 1870, and in most cities occasional 
revolts of outraged citizens overturned the machines, 
but in the long run the citizen was no match for the 
professional politician. In the unequal contest city 
government became steadily worse in America at a 
time when European city government was rapidly 
improving. States, too, were afflicted with machine 
politics, and before 1890 it appeared that the dom- 
inant national party derived its most valuable sup- 
port from organized business that profited by the 
partnership. 

A minority of Americans fought continually for 
better and cleaner government as the evils of boss 
rule became more visible. One of them. Bishop Pot- 
ter, of New York, gained wide hearing through a 
sermon preached at the centennial of the Constitu- 
tion, in 1887, in which he turned from the usual 
patriotic congratulation to discuss actual government. 
The keenest interest in the subject was aroused by 
the American Commo7iwecUth of James Bryce. 

Not since Alexis de Tocqueville published his 
Democracy in Am^erica^ in 1836, had any foreign 
observer made an equally intimate study of Ameri- 
can life, until James Bryce, a young English histo- 
rian, began a series of visits to the United States in 
the early seventies. For nearly twenty years Bryce 
repeated his visits, living at home a full life in his 
Oxford professorate, in the House of Commons, and 
in the Ministry. In America he knew every one 
worth knowing, and he saw the remoter regions of 
the West as well as the older society of the East. In 



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THE "COUNTER-REFORMATION" 847 

1888 he brought out the result of his studies in two 
volumes that were filled with admiration for the 
United States and with disheartening observation 
upon its practices. One of its chapters cut so close 
that its victim brought suit for libel, but American 
opinion accepted the book as a friendly picture and 
regarded attacks upon it as further evidence of its 
inherent truth. Probably no book in a generation so 
profoundly influenced American thought and so spe- 
cifically directed the course of American reform. It 
became a textbook at once, teaching the truth that 
corruption and misgovemment were non-partisan, 
and until the Populists took them up the movements 
for reform were non-partisan as well. 

The power of the boss lay largely in the structure 
of American governmental machinery, and though 
some preached the need for a reform in spirit, others 
saw that only mechanical improvements could ac- 
complish results. A corruptible electorate, such as 
had long confused British and American politics, 
was one defect most easily improved. The prevailing 
system for conducting elections made it easy for the 
purchaser of votes to see that he got value for his 
money. The State provided the polling-place, but 
the candidate or the party provided the printed bal- 
lot. Pariy agents distributed these at the polls, and 
the voters who received them could be watched until 
the votes were cast. Intimidation of employees or 
direct bribery were easy and common, while secret 
deab were not unknown. The loyal party voter de- 
posited the ballots provided for him ; the boss could 
have these arranged to suit his needs. It was corn- 



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248 THE NEW NATION 

monly supposed that in 1888, through au agreement 
between the Democratic and Bepublican bosses of 
New York, Hill and Piatt, nuuiy Republicans were 
made to vote for Hill as Governor, while Democrats 
voted for Harrison as President. 

A secret ballot was so reasonable a reform that 
once it had been suggested it spread rapidly over 
the United States. In 1888 Massachusetts adopted 
a system based upon the Australian Ballot Law, 
while New York advertised its value in the same 
year when Governor Hill vetoed a bill to establish it. 
Before the next presidential election came in 1892, 
open bribery or intimidation of voters was rapidly 
becoming a thing of the past, for thirty-three States 
had adopted the Australian ballot, provided by public 
authority and voted in secrecy. " Quay and Piatt and 
Clarkson may find in this fact a fresh explanation of 
President Harrison's willingness to divest himself of 
their services," wrote Godkin in a caustic paragraph 
in 1892. 

The Australian ballot enabled the honest citizen 
to vote in secrecy and safety, but it failed to touch 
the fact that the nominations were still outside the 
law. "To find the honest men," Bryce wrote, "and 
having found them, to put them in office and keep 
them there, is the great problem of American poli- 
tics." So long as a boss could direct the nomination 
he could tolerate an honest election. The movement 
to legalize the party primaries was just beginning 
when the ballot reform was accomplished. The most 
extreme of the primary reformers saw the need for 
a preliminary election conducted within each party, 



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THE "COUNTER-EEFOBMATION" 249 

but under all the safeguards of law, to the end that 
the voters might themselves determine their candi- 
dates. Direct primaries were discussed by the younger 
men, who were often ambitious, but helpless because 
of the rigor with which the bosses selected their own 
candidates. In 1897 a young ex-Congressman, Kob- 
ert M. LaFollette, worked out a complete system of 
local and national primaries, and found wide and 
sympathetic hearing for it. The movement had to 
face the bitter opposition of the machine politicians 
because it struck directly at their power, but it pro- 
gressed slowly. In 1901 it won in Minnesota; a 
little later it won in Wisconsin ; and in the next 
ten years it became a central feature in reform plat- 
forms. 

The reforms of the primary and the ballot were 
designed to improve the quality of public officers, 
and were supplemented by a demand for direct legis- 
lation which would check up the result. In Switzer- 
land a scheme had been devised by which the peo- 
ple, by petition, could initiate new laws or obtain a 
vote upon existing laws. The idea of submitting 
special measures to popular vote, or referendum, was 
old in the United States, for in this way state con- 
stitutions and constitutional amendments were ha- 
bitually adopted, and matters of city charters, loans 
and franchises often determined. The initiative, 
however, was new, and appealed to the reformer who 
resented the refusal of the legislature to pass de- 
sired laws as well as the unwillingness to pass worthy 
ones. The Populists, in 1892, recommended that the 
system of direct legislation be investigated, and they 



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S60 THE NEW NATION 

favored its adoption in 1896. A journal for the pro- 
motion of the reform appeared in 1894. In 1898 
the first State, South Dakota, adopted the principle 
of initiative and referendum in a constitutional 
amendment. To those who attacked the device as 
only mechanical it was answered : ^^ Direct legislar 
tion is not a panacea for aU national ills. In &ct it 
is not a panacea at alL It is merely a spoon with 
which the panacea can be administered. Specific 
legislation is the panacea for political ills." 

The West was more ready than the East to break 
from existing practice and take up the new reforms. 
It had always been the liberal section of the United 
States. Between 1800 and 1880 it had led in the 
enlargement of the franchise and in the removal of 
qualifications of wealth and religion. It now ap- 
proached the one remaining qualification of sex. 
With the admission of Wyoming in 1890, full 
woman suffrage appeared among the States. Colo- 
rado adopted an amendment establishing it in 1893. 
Utah, in the words of the women, *^ completing the 
trinity of true Republics at the summit of the Bodc- 
ies," became the third suffrage State in January, 
1896, while Idaho adopted woman suffrage in the 
same year. It was fifteen years before a fifth State 
was added to the list, but the women's movement was 
advancing in all directions. A General Federation of 
Women's Clubs was organized in 1890 as a clearing- 
house for the activities of the women, and through 
organizations like the Consumers' League, the move- 
ment fell into line with the general course of reform. 
A clearer vision of the defects in governmental ma- 



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THE "COUNTER-REFORMATION" 251 

chinery and of the needs of society was spreading 
rapidly. Hull House, opened in 1889 by Jane Ad- 
dams, had a host of imitators in the cities, and 
enabled social workers to study the results of indus- 
trial progress upon the laboring class. 

The new reforms, mechanical and otherwise, estab- 
lished themselves about 1890, and were taken up by 
the Populist party between 1892 and 1896. Neither 
great party noticed the reforms before 1896, but in 
each party the younger workers saw their point. As 
non-partisan movements they gained adherents before 
the Populist party died out, and were pressed more 
and more seriously upon reluctant organizations. As 
a whole they were an attempt to make government 
more truly representative of the voters, and to take 
the control of affairs from the hands of men who 
might and often did use them for private aggran- 
dizement. They were overshadowed in 1896 by the 
paramount issue of free silver, and were deferred in 
their fulfilment for a decade by accidents which drove 
them from the public mind. The Spanish War, re- 
viving prosperity, and the renewal of tariff legisla- 
tion, did not check the activities of the reformers, but 
did divert the attention of the public. 

William McKinley was inaugurated on March 4, 
1897. He had served in five Congresses and had 
been three times governor of Ohio. He "knew the 
legislative body thoroughly, its composition, its meth- 
ods, its habits of thought," said John Hay. " He had 
the profoundest respect for its authority and an in- 
flexible belief in the ultimate rectitude of its pur- 
poses." He was not likely to embarrass business 



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262 THE NEW NATION 

through bluntness or inexperience. He had risen 
through a kindly disposition, a recognition of the 
political value of tact, and an unusual skill as a 
moderator of yariant opinions. He believed that his 
function was to represent the popular will as rapidly 
as it expressed itself, differing fundamentally in this 
from Cleveland, who thought himself bound to act 
in the interest of the people as he saw it. His Cab- 
inet reflected the interests that secured his election. 
The trend of issues had made the Sepublican 
party, by 1897, the party of organized business. 
For twelve years the alliance had grown steadily 
closer. Marcus A. Hanna was its spokesman. The 
burlesque of his sincere and kindly face, drawn by a 
caricaturist, Davenport, for Eastern papers, created 
for the popular eye the type of commercialized mag- 
nate, but it did him great injustice. Self-respecting 
and direct, he believed it to be the first function of 
government to protect properly, and that property 
should organize for this purpose. Without malevo- 
lence, he conducted business for the sake of its 
profits, and regarded government as an adjunct to it* 
He possessed great capacity for winning popularity, 
and after his entry into public life in 1897 gained 
reputation as an effective speaker. He destroyed, 
before his death, much of the offensive notoriety that 
had been thrust upon him during the campaign of 
1896, but he remained the best representative of the 
generation that believed government to be only a 
business asset. He did not enter the Cabinet of 
McKinley, but was appointed Senator from Ohio 
when John Sherman vacated his seat. 



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THE "COUNTER-REFORMATION*' 25S 

The pledge of the Republicans for international 
bimetallism created a need for a financial Secretary 
of State, and John Sherman, though old and infirm, 
was persuaded to undertake the office. The routine 
of the department was assigned to an assistant sec- 
retary, William R. Day, an old friend of the Presi- 
dent. A magnate of the match trust, RusseU A. Alger, 
of Michigan, received the War Department. The 
president of the First National Bank of Chicago, 
Lyman J, Gage, received the Treasury. The other 
secretaries, too, were men of solidity, generally self- 
made, and likely to inspire confidence in the world 
of business. 

The new Senators who appeared at this time repre- 
sented the same alliance of trade and politics. Hanna, 
in Ohio, and Thomas C. Piatt, president of the United 
States Express Company, in New York, were the 
most striking instances. In Pennsylvania Quay was 
able to nominate his colleague in spite of the opposi- 
tion of his old associate, John Wanamaker, and se- 
lected Boies Penrose. Only with the aid of the silver 
Senators could a Republican majority be procured 
in the Senate. This made currency legislation im- 
possible, but the managers hoped that there would be 
a majority for a protective tariff when Congress met 
in special session, two weeks after the inauguration. 

Preparations for a revision of the tariff had been 
made lono: before Cleveland left office. Reed was cer- 
tain to be reelected as Speaker by a large majority. 
Nelson Dingley, of Maine, was equally certain to be 
chairman of the Committee on Ways and Means, 
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854 THE NEW NATION 

xampant spirit for protection was revealed as the 
manuf aoturers stated their wishes to the committee. 
It was often told how the low rates of the Wilson 
Bill had caused the panic of 1893, and a New York 
maker of ^^ Oriental rugs" created amusement by 
asking to be protected from the competition, not of 
the Orient, but of the German manufacturers. Since 
1890 the strength of the Kepublican organization had 
been directed toward this revision, and the leaders 
had held back the silver issue lest it should derange 
their plans. Now, though returned to power only on 
the issue of the currency, they held themselves em- 
powered to act as though the tariff had been domi- 
nant in 1896. The call stated the need for tariff 
legislation, and Beed held the House to its task by 
refusing to appoint the committees without which 
other business could not be undertaken. 

The Dingley BiU passed the House of Sepresenta- 
tives after a perfunctory debate which every one 
regarded as only preliminary to the real struggle 
in Senate and Conference Committee. In the Sen- 
ate it became a new measure at the hands of the 
Finance Committee, whose secretary, S. N. D. North, 
was also secretary of the Wool Manufacturers' As- 
sociation. Bevenue was everywhere subordinated to 
protection, until the Chief of the Bureau of Statistics, 
Worthington C. Ford, declared that the act would 
prolong the deficit which it was designed to cure. On 
its final passage, the Democratic Senator, McEnery, 
of Louisiana, left his party to vote for protection to 
sugar. He was welcomed home in August, in spite 
of his ^^ treason," by a reception committee with 



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THE "COUNTER-REFORMATION" 855 

four hundred vice-presidents. The silver Senators, 
headed by Jones, of Nevada, were induced to sup- 
port the bill. They had procured the Sherman 
Silver Bill in 1890 by the same tactics, and now, 
holding the balance of power, secured a group of 
amendments for themselves, covering hides, wool, 
and ore. The measure passed the Senate early in 
July and became a law July 24, 1897. Senator 
William B. Allison, of Iowa, was largely responsible 
for its final passage, although the law continued to 
bear the name of its forgotten originator, Dingley. 

The Eepublican party was in no condition in 1897 
to become the vehicle of the non-partisan reforms 
that the Populists advocated and that many yoimg 
Republicans had taken up. The interest in tariff 
legislation drove everything else from the national 
organization, while returning prosperity destroyed 
the mental attitude in which reforms had flourished. 
Political introspection was less easy in 1897 and 1898 
than it had been in the years of confusion and en- 
forced economy since 1890. The civil service and 
ballot reforms had been started on the upward course, 
but party machines continued in control of each great 
organization. 

The conduct of the Senate discouraged many of 
the reformers In the spring of 1897. Cleveland had 
left in its hands a treaty of arbitration with Great 
Britain, but no action had been taken upon it when 
he left office. Arbitration had been a common inter- 
national tool between Grreat Britain and the United 
States. Boundaries, fisheries, and claims had repeat- 
edly been submitted to courts or commissions of 



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256 THE NEW NATION 

Yarying structure, and even the claims affecting the 
honor of (jreat Britain had been settled by arbitra- 
tion at Geneva* After the Venezuela excitement 
friends of peace gathered in a convention at Lake 
Mohonk to discuss the extension of the method of 
arbitration. When (jreat Britain had accepted the 
principle in the case of Venezuela, Cleveland en- 
tered into a general arbitration treaty, which was 
signed at Washington in February, 1897. Public 
opinion received it cordially, but the Senate was slow 
to take it up. Late in the spring it was ratified with 
amendments that destroyed its force and showed the 
reluctance of Senators to accept the principle of 
arbitration. International peace was thus postponed, 
while the rising insurrection in Cuba drove it as well 
as general reform from the center of public interest. 

BIBLIOGRAPHICAL NOTE 

The American Commonwealth of James Bryoe (1888) is the 
starting-point for the study of political conditions of the nine- 
ties, and is to be reinforced by W. Wilson, Congressional 
Govemmenf. (1885), T. Roosevelt, Essays on Practical Politics 
(1888), and P. L. Ford, The Honorable Peter Stirling (1894). 
Among the personal narratives the most useful are T. Roose- 
velt, Fifty Years of My Life (1913); R.M. LaFoUette,^! Per- 
sonal Narrative of Political Experiences (1913; also published 
serially in the American Magasdne, 1911, as " Autobiography ") ; 
Tom L. Johnson's My Story (1911; edited by E. J. Hauser); 
C. Lloyd, Henry Demarest Lloyd (2 vols., 1912) ; Autobiography 
of Thomas Cottier Piatt (1910 ; edited by L. J. Lang, and 
highly unreliable) ; and Jane Addams, Twenty Years of HuU 
House (1910). Much light is thrown upon the mechanics of 
tariff legislation by I. M. Tarbell, The Tariff in Our Times 
(1911), and by the lobby investigations conducted by commit- 
tees of Congress in 1913, and by the campaign fund investiga- 



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THE "COUNTER-REFORMATION" 267 

tions oondncted by similar committees in 1912. The progress 
of the Australian ballot reform must be traced through the 
periodicals, as it has no good history. £. C. Meyer, Nominating 
Systems : Direct Primaries versus ConverUions in the United States 
(1902), is standard in its field, as are E. P. Oberholtzer, T%e 
Referendum in America (1893), and E. C. Stanton, S. B. Anthony, 
and M. J. Gage, History of Woman Suffrage, 1848-1900 {4^ vols., 
1881-1902). The Annual Reports of the Lake Mohonk Confer- 
ences on International Arbitration are a useful aid in tracing 
the principles of arbitration. 



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CHAPTER XVI 

THE SPAKISH WAB 

Cuba broke out in one of her numerous insup- 
rections in 1895. The island had been nominally 
quiet since the dose of the Ten Years' War, in 1878, 
but had always been an object of American interest. 
More than once it had entered into American diplo- 
macy to bring out reiterations of different phases 
of the Monroe Doctrine. Its purchase by the United 
States had been desired to extend the slave area, or 
to control the Caribbean, or to enlarge the fruit and 
sugar plantation area. The free trade in sugar, which 
the McKinley Bill had allowed, ended in 1894, and 
almost immediately thereafter the native population 
demanded independence. 

The revolt of 1895 was defended and justified by 
a recital of the faults of Spanish colonial government. 
Caste and monopoly played a large part in Cuban 
life. The Spanish-bom held the offices, enjoyed the 
profits, and owned or managed the commercial priv- 
ileges. The western end of the island, most thickly 
settled and most under the influence of Spain, gave 
least support to the uprising, but in the east, where 
the Cubans and negroes raised and ground cane, 
or grazed their herds, discontent at the system of 
favoritism and race discrimination was an important 
political force. Here the insurgents soon gained a 



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ATiASKA, TH£ PHIUPPIN1SS, ANI> THS SEAT OF THB 
SPANISH WAB 



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860 THE NEW NATION 

foothold in the proyinoes of Santiago, Puerto Prin- 
cipe, and Santa Clara. From the jungle or the moun- 
tains they sent bands of guerrillas against the sugar 
mills and plantations of the ruling class, and when 
pursued their troops hid their weapons and became, os- 
tensibly, peaceful farmers. A revolutionary govern- 
ment, sitting safely in New York, directed the revolt, 
raised money by playing on the American love of 
freedom, and sent cargoes of arms, munitions, and 
volunteers to the seat of war. Avoiding pitched bat- 
tles and living off the country, the patriot forces com- 
pelled Spain to put some 200,000 troops in Cuba 
and to garrison every place that she retained. 

Through 1895 and 1896 the war dragged on with 
no prospect of victory for the authorities and with 
growing interest on the part of the United States. 
Public sympathy was with the Cubans, and news 
from the front was so much desired that enterprising 
papers sent their correspondents to the scene of ac- 
tion. The reports of these, almost without exception, 
magnified the character and promise of the native 
leaders and attacked the policy of the Spanish forces 
of repression. 

The insurgents began, in 1895, a policy of terror, 
destroying the cane in the fields of loyalists and 
burning their sugar mills. To protect the loyalists 
and repress the rebels the Queen Eegent sent Gen- 
eral Valeriano Weyler to the island in 1896, with 
orders to end the war. Weyler replied to devasta- 
tion with concentration. Unable to separate the loyal 
natives from the disloyal, or to prevent the latter 
from aiding the rebels, he gathered the suspected 



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THE SPANISH WAE 261 

population Into huge concentration camps, fortified 
his towns and villages with sentinels and barbed- 
wire fences, and endeavored to depopulate the area 
outside his lines. American public opinion, unused 
for a generation to the sight of war, was shocked by 
the suffering in the camps and was aroused in moral 
protest. Sympathy with the insurgents grew in 1896 
and 1897, as exaggerated tales of hardship and 
brutality were circulated by the "yellow" newspa- 
pers. The evidence was one-sided and incomplete, 
and often dishonest, but it was effective in steering 
a rising public opinion toward ultimate interven- 
tion. 

The nearness of the contest brought the trouble 
to the United States Government through the en- 
forcement of the neutrality laws. There was no pub- 
lic war, and Spain was thus unable to seize or ex- 
amine American vessels until they entered actual 
Cuban waters. It was easy to run the Spanish block- 
ade and take supplies to tiie rebel forces, which was 
a permissible trade. It was easy, too, to organize and 
send out filibustering parties, which were highly 
illegal, and which the United States tried to stop. 
Out of seventy-one known attempts, the United States 
broke up thirty-three, while other Powers, including 
Spain, caught only eleven. Enough landed to be a 
material aid to the natives and to embitter Spain 
in her criticism of the United States. Cleveland 
issued proclamations against the unfriendly acts of 
citizens, and enforced the law as well as he could 
in a population and with juries sympathizing with 
the law-breakers. Even in Congress he found little 



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202 THE NEW NATION 

sympathy in his attempt to Tnaintain a sincere neu- 
trality. 

Congress felt the popular sympathy with the 
Cubans and responded to it, as well as to the de- 
mands of Americans with investments in Cuba. In 
the spring of 1896 both houses joined in a resolution 
favoring the recognition of Cuban belligerency. This 
Cleveland ignored. In December, 1896, the Senate 
Committee on Foreign Relations reported a resolu- 
tion for the recognition of Cuban independence, and 
individual members of Congress often read from the 
newspapers accounts of horror, and made impassioned 
speeches for recognition and intervention. But Cleve- 
land kept his control over the situation until he left 
office, as Ghrant had done during the Ten Years' War 
and the excitement over the Yirginius affair. He 
left the determination of the time and manner of 
ultimate intervention to his successor. 

Among the planks of the Republican platform of 
1896 was one asserting the duty of the United States 
to ^* use its influence and good offices to restore peace 
and give independence to Cuba," but there is no 
evidence that President McKinley contemplated a 
forcible intervention when he organized his Cabinet. 
John Sherman had, as Senator, spoken freely in 
sympathy with Cuba* As Secretary of State he re- 
called Hannis Taylor from Madrid and sent out 
Greneral Stewart L. Woodford, with instructions 
looking toward a peaceful mediation. Not until the 
autumn of 1897 was it possible to press the Cuban 
matter, for Spain suffered two changes of Ministry 
and the murder of a Prime Minister. But by the 



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THE SPANISH WAR 26S 

end of September Spain had been notified that Mc- 
Kinley hoped to be able to give positive assurances 
of peace to Congress when it met in December. 

A Liberal Government, headed by Sagasta, took 
office in Spain in October, 1897. It declined media- 
tion by the United States, retorting that if the 
United States were to enforce the law of neutrality 
the war would soon cease. It recalled Weyler, how- 
ever, sent out a new and milder governor-general, 
modified the reconcentrado orders that had so en- 
raged the United States, and issued, on November 
25, a proclamation establishing a sort of home 
rule, or autonomy, for Cuba. In the winter of 1897 
the Spanish Government was endeavoring to give 
no excuse for American intervention, and at the 
same time, by moderate means, to restore peace 
in Cuba. The Spanish population of Cuba opposed 
autonomy and made the establishment of autonomous 
governments a farce. In January there were riots in 
Havana among the loyal subjects. Outside the Span- 
ish lines the rebels laughed at autonomy, for they 
were determined to have independence or nothing. 
Woodford, in touch with the Spanish Government, 
believed that in the long run the Spanish people 
would let the Queen Regent go beyond autonomy 
to independence, and that with patience Cuba might 
be relieved of Spanish control. 

There was no positive news for Congress in De- 
cember, 1897, but by February the conditions in 
Cuba had become the most interesting current prob- 
lem. The New York Journal obtained and published 
a private letter written by the Spanish Minister, 



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264 THE NEW NATION 

De Lome, in which McEinley was charaotorized as a 
temporiziiig politician. The Minister had no sooner 
been recalled than the Maine, a warship that had 
been detached from the North Atlantic Squadron, 
and sent to Cuba to safeguard American oitiaens 
there, was destroyed by an explosion in the harbor 
of Havana, on February 15, 1898. There was no 
evidence connecting the destruction of the Maine 
with any person, but unscrupulous newspapers made 
capital out of it, using the catch-phrase, ^^ Bemem- 
ber the Maine," to inflame a public mind already 
aroused by sympathy and indignation. After Feb- 
ruary, only a determined courage could have with- 
stood the demand for intervention and a Spanish 
war. 

The negotiations with Spain continued rapidly in 
the two months after the loss of the Maine. Mc- 
Einley avoided an arbitral inquiry into the accident, 
urged by Spain, but pressed increasingly for an end 
of concentration, for relief for the suffering popukp 
tion, and for full self-government. He did not ask 
independence for Cuba, and every demand that he 
made was assented to by Spain. Notwithstanding 
this, on April 11, 1898, he sent the Cuban corres- 
pondence to Congress, urged an intervention, and 
turned the control of the situation over to a body 
that had for two years been clamoring for forcible 
interference. Nine days later Congress resolved, 
«« That the people of the Island of Cuba are, and of 
right ought to be, free and independent." On April 
21 the Spanish War began. 

The administrative branches of the Government 



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THE SPANISH WAR 265 

Lad made some preparations for war before the decla- 
ration. The na^y was small but modem. It dated 
from the early eighties, when Congress was roused 
to a realization that the old CSvil War navy was 
obsolete and began to authorize the construction of 
modem fighting ships. The *' White Squadron " took 
diape in the years after 1893. Only two armored 
cruisers were in commission when Harrison left office, 
but the number increased rapidly until McKinley 
had available for use the second-class battleships 
Maine and Texas, the armored cruiser Brooklyn, and 
the first-class battleships Iowa, Indiana, Massachu* 
setts, and Oregon. From the beginning of the Mc- 
Kinley Administration these, as well as the lesser 
Tessels of all grades, were diligently drilled and or- 
ganized. The new Assistant Secretary of the Navy, 
Theodore Roosevelt, had foreseen and hoped for war. 
He spent the contingent funds on target practice, and 
had the naval machine at its highest efficiency when 
the Maine was lost. On March 9, 1898, Congress, 
in a few hours, put $50,000,000 at the disposal of 
the President for national defense, and the navy 
spent its share of this for new vessels, transports, and 
equipment. The vessels in the Orient were mobilized 
at Hongkong under the command of Commodore 
Greorge Dewey ; the Oregon, on station in the Pacific, 
was ordered home by the long route around the Horn ; 
the ships in the Atlantic were assembled off the 
Chesapeake. Part of the latter were organized as a 
flying squadron, for patrol, under Commodore Win- 
field Scott Schley, while toward the end of March 
Captain William T. Sampson was promoted over the 



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266 THE NEW NATION 

heads of many ranking officers and given command 
of the whole North Atlantic Squadron, including the 
fleet of Schley. 

Congress debated a new army bill while the navy 
was being prepared for war. Not until April 22 did it 
permit the enlargement of the little regular army of 
25,000. Until war had beg^ the volunteers, of whom 
some 216,000 were taken into the service, could not 
be called out or made ready for the field. Some pre- 
parations were made within the War Department, 
but the little staff of clerks, used to the small routine 
of the peace basis, and having no plan of enlarge- 
ment or mobilization worked out, made little head- 
way. The navy was ready to strike the day war was 
declared, but the army had yet to be planned, re- 
cruited, clothed, drilled, and transported to the front. 
The men of the navy knew their duty and were ready 
for it; in the army thousands of civilians had to 
blunder through the duties of strange offices. Wil- 
liam J. Bryan accepted the colonelcy in a Nebraska 
regiment. Theodore Eoosevelt resigned his office in 
the Navy Department to raise a regiment of volun- 
teer cavalry. Politicians struggled for commissions 
for themselves and friends. Civil War veterans fought 
for reappointment, and enough soldiers of the Con- 
federacy put on the blue uniforms, or sent their sons, 
to show that the breach had been healed between the 
North and South. It was an enthusiastic rather than 
an effective army that was brought together in the 
two months after the war began. 

Cuba, the cause of the war and its objective, was 
the center of the scheme of strategy. The navy was 



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THE SPANISH WAR 267 

called upon to protect the Atlantic seaboard from 
the fleet of Spain, which was reputed to be superior 
to that of the United States. It had also to maintain 
a blockade of Cuba and prevent the landing of rein- 
forcements until the army could be prepared to in- 
vade the island. Dewey's fleet in the Pacific was 
ordered to destroy the Spanish naval force in the 
Philippine Islands, and moved immediately upon 
Manila when Great Britain issued her proclamation 
of neutrality and made it impossible to remain longer 
in her waters at Hongkong. 

On the morning of May 1 Dewey led his squadron 
past the forts, over the submerged mines, and up the 
channel of Manila Bay. The Spanish forces in the 
islands, already contending with a native insurrection, 
were helpless before evening, having lost the whole 
fleet. Dewey was left in a position to take the city 
when he chose, and sent home word to that effect. 
He waited in the harbor until an army of occupation 
had been got ready, hurried to the transports at San 
Francisco, and sent out under General Wesley 
Merritt. He brought the native leader Aguinaldo 
back to the islands, whence he had been expelled, to 
foment insurrection. The first American reinforce- 
ments arrived at Manila by the end of June. On 
August 13 they took the city. 

Before the news of the surprising victory at Manila 
reached the United States there was nervousness 
along the Atlantic Coast because of the uncertain 
plans of the main Spanish fleet, which had left the 
Cape Verde Islands, under Admiral Cervera, on April 
29, and which might appear ^ff J^ew York or Boston 



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868 THE NEW NATION 

at any time. The naval strategists knew it must be 
headed for the West Indies, but seaboard Congress- 
men begged excitedly for protection, and the sensa- 
tional newspapers pictured the coast in ruins after 
bombardment. 

To Sampson and Schley was assigned the task of 
guarding the coast, keeping up the blockade, and 
finding Cervera's fleet before it reached a harbor in 
American waters. San Juan, Santiago de Cuba, Cien- 
fuegos, and Havana were the only probable destinar 
tions. Sampson watched the north side of Cuba and 
Porto Kico, while Schley and the flying squadron 
moved to Key West, and on May 19 started around 
the west end of Cuba to patrol the southern shore. 
On that same day, entirely unobserved, Cervera 
slipped into the port of Santiago, at the eastern ex- 
tremity of Cuba. When the rumor of his arrival 
reached Sampson at Key West, Schley was already 
well on his way and firm in his belief that Cervera 
was heading for Cienfuegos. 

The flying squadron, impeded by its colliers and 
its tenders, moved deliberately around Cuba to Cien- 
fuegos, outside of whose harbor it remained for two 
days. Here Sampson's orders to proceed immediately 
to Santiago reached it. On May 26 the fleet was off 
the entrance to Santiago Harbor, and in this vi- 
cinity it stayed for two more days. Schley could 
get no news that Cervera was here ; he feared that 
his coal would give out and that heavy seas would 
prevent his getting what coal he had out of his col- 
liers. He decided, in spite of orders, to go back 
to Key West; he started a retrograde movement. 



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THE SPANISH WAR 269 

reconsidered it, and was again on blockade when, 
early on Sunday morning, May 29, he discovered 
the Spanish fleet at anchor in the channel, where it 
had been for the last nine days. 

The blockade of Santiago was strengthened on 
June 1 by the arrival of Sampson, who had rushed 
thither on hearing that Schley had decided to leave 
the post. The two fleets were merged, and Schley, 
outranked by Sampson, became a passenger on his 
flagship Brooklyn. By day, the warships, ranged in 
a great half-circle, watched the narrow outlet of the 
harbor. By night they took turns standing close in, 
with searchlights playing on the entrance. For five 
weeks they kept this up, not entering the harbor 
because of their positive orders not to risk the loss 
of any fighting units, and waited for the arrival of 
an army to cooperate with them against the land 
defenses of Santiago. 

Sampson asked for military aid early in June, 
and on June 7 the War Department ordered the 
army that had been mobilized at Tampa to go to his 
assistance. General Nelson A. Miles, in command 
of the army, was not allowed to head the eicpedition, 
but was kept at home while General William K. 
Shafter directed the field work. At Tampa there 
was almost hopeless confusion. The single track 
railway that supplied the camp was unable to move 
promptly either men or munitions, the Quarter- 
master's Department sent down whole trainloads of 
supplies without bills of lading, and when the troops 
were at last on board the fieet of transports they 
were kept in the river for a week before they were 



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870 THE NEW NATION 

allowed to start for Santiago. Sixteen thousand 
men, mostly regulars, with nearly one -thousand offi- 
cers and two hundred war correspondents, sailed on 
June 14, and were in conference with Sampson six 
days later. 

A misunderstanding as to strategy arose in this 
conference. Sampson left it believing that the army 
would land and move directly along the shore against 
the batteries that covered the entrance to the har- 
bor. Shafter, however, though he issued no general 
order to that effect, was determined to march inland 
upon the city of Santiago itself. On June 22 and 
23 the army was landed by the navy, for it had 
neither boats nor lighters of its own. The first 
troops, climbing ashore at the railway pier at Dai- 
quiri, marched west along the coast to Siboney, 
and then plunged inland, each regiment for itself, 
along the narrow jungle trail leading to Santiago. 
Shafter himself, corpulent and sick, followed as he 
could. Before he established his control over the 
army on land the head of the column had engaged 
the enemy at Las Gnasimas, nine miles from Santi- 
ago, on June 24. The First Volunteer Cavalry, 
under the command of Colonel Leonard M. Wood, 
with Theodore Boosevelt as lieutenant-colonel, had 
marched most of the night in order to be in the 
first fighting. After a sharp engagement the Span- 
ish retired and the American advance upon Santiago 
continued in a more orderly fashion. 

The narrow trail between Siboney, on the shore, 
and Santiago, was some twelve miles long. There 
were dense forests on both sides. Along tbis the 



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THE SPANISH WAR 271 

American armjr stretched itself at the end of June. 
There were few ambulances or wagons, and they 
could not have been used if they had been more 
numerous. Kations for the front were packed on 
mules or horses. The troops, hurried to the tropics 
in the heavy, dark, winter clothing of the regular 
army, suffered from heat, rain, and irregular ra- 
tions. Before them the San Juan Kiver crossed the 
trail at right angles. Beyond this were low hills 
carrying the fortifications, trenches, and wire fences 
of Santiago, behind which the Spanish force could 
fight with every advantage in its favor. Some five 
miles to the right of the line of advance was the 
Spanish left, in a blockhouse at El Caney. On the 
night before July 1, the American army moved on 
a concerted plan against the whole Spanish line. 

Lawton, with a right wing, moved against El 
Caney, with the idea of demolishing it and crum- 
pling up the Spanish left. The main column followed 
the trail, crossed the San Juan Eiver, and stormed 
the hills beyond. The fight lasted all day on July 1, 
leaving the American forces to sleep in the Spanish 
trenches, and to re-face them the next day. There 
was more fighting on July 2 and 3, after which 
Santiago was besieged by land, as it had been by 
sea since June 1. 

Cervera watched the invading army with growing 
desperation. He knew the inefficiency of his fieet, 
that it had left Spain unprepared because public 
opinion demanded immediate action, that its guns 
were lacking and its morale low, that if it stayed at 
anchor in the harbor it would be taken by the army, 



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278 THE NEW NATION 

and that if it went to sea it would be annihilated by 
Sampson. His only chance was to rush out, scatter 
in flighty and trust to luck. On Sunday, July 8, he led 
his ships out of the harbor in single file, turned west 
against the Brooklyn, which guarded the American 
Ic^, and endeavored to escape. 

Sampson had already issued orders for battle in 
case Cervera should come out. He had himself 
started with his flagship, the New York, for a con- 
ference with Shafter, and was some seven miles east 
of the entrance to the harbor when the fleet ap- 
j)eared and the battle began. He turned at once 
to the long chase that pursued the Spanish vessels 
along the Cuban shore. The Brooklyn, at which 
Cervera had headed, instead of closing, circled to 
the right, and nearly rammed her neighbor, the 
Texas, before she regained her place at the head of 
the pursuit. Schley was the ranking officer in the 
battle, but no one needed or heeded the orders 
that he signaled to the other ships. Before sundown 
the Spanish fleet was completely destroyed. 

The land and naval battles at Santiago brought 
the Spanish War to an end. For several weeks the 
army kept up the investment, with health and 
morale steadily deteriorating. On July 17 the Span- 
ish army at Santiago was surrendered. On July 27 
an invasion of Porto Rico under General Miles took 
place, and on August 12 the preliminaries of peace 
were signed on behalf of Spain by the French Min- 
ister at Washington. Manila fell the next day, and 
tiie war closed with the American army in possession 
of the most valuable of Spain's remaining colonies. 



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THE SPANISH WAR 273 

The Spaiuah and American peace oonunissioners 
met in Paris in October to fix a basis for settlement. 
An American demand that Cuba should be set free, 
without debt, and left to the tutelage of the United 
States, and that Porto Rico should become an 
American possession, was formulated early in the 
autumn. There was less certainty about the retention 
of the Philippines, for here the desire for expansion 
was checked by a conserrative opposition to the adop- 
tion of foreign colonies. The evil effects of imperial- 
ism were already being pictured by those who had 
opposed the war. The difficulties of returning the 
islands to Spain were greater than those involved in 
their retention, and McKinley finally determined 
that the cession must include the Philippine Archi- 
pelago, and the island of Guam in the Ladrones. 
The chief of the American commissioners was Wil- 
liam R. Day, who had become Secretary of State 
early in the war, and who wa9 succeeded in that post 
by John Hay. Under his direction tl^e Treaty of 
Paris was signed December 10, 1898. 

The war and the conquest of the Philippines 
hastened another though peaceful expansion. The 
Hawaiian Islands had been a matter of interest to 
the United States since the American missionaries 
had begun to work there in the thirties. A growing, 
American, sugar-raising population had long hoped 
for annexation and had carried out a successful revo- 
lution shortly before 1893. Harrison had concluded 
a treaty of annexation with the provisional govern- 
ment, but Cleveland had refused to approve it. On 
July 7, 1898, however, the Newlands Resolution 



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274 THE NEW NATION 

accomplished the annexation of the republic, and in 
1900 a regular territorial government was provided 
for the group of islands. The spectacular journey of 
the Oregon around Cape Horn revived the demand 
for an isthmian canal. Expansion suddenly took pos- 
session of the American mind, and a new idea of 
duty, summed up by Budyard Kipling in Hie White 
Man^s Burden^ filled a large portion of the press. 

The United States had suddenly passed from in- 
ternal debate over free silver to war and conquest. 
At the end of 1898 the War Department, that had 
proved its inadequacy in nearly every phase of the 
war, was forced to develop a colonial policy for Porto 
Bico and the Philippines and to guide Cuba to inde- 
pendence. It was still under the direction of General 
Bussell A. Alger, but was torn by dissension and 
criticism upon the conduct of the war. Not until 
Alger was asked to retire, in 1899, and Elihu Boot, 
of New York, succeeded him, was the War Depart- 
ment made equal to its task. 

BIBLIOGRAPHICAL NOTE 

The best acoount of the war with Spain is F. E. Chadwick, 
Relations of (he United States and Spain: DipUmaey (1909), and 
Relations of the United States and Spain: The Spanish Ameri' 
can War (2 vols., 1911). These works have in large measure 
superseded the earlier studies ; J. M. Callahan, Cuba and In-- 
temational Relations (1899) ; J. H.Latan^, The Diplomatic Re- 
lations of the United States and Spanish America (1900 : — so 
far as it relates to Cuba) ; H. E. Flack, Spanish-American 
Diplomatic Relations preceding the tear of 1898 (in Johns Hop- 
kins University Studies, vol. xxrv) ; and E. J. Benton, Inter- 
national Law and Diplomacy of the Spanish-American War 
(1908). Useful narratives relating to the army are B. A. Alger, 



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THE SPANISH WAR 276 

The Spanish-American War (1901) ; H. H. Sargent, The 
Campaign of Santiago de Cuba (3 vols., 1907) ; J. Wheeler, The 
Santiago Campaign (1899) ; J. D. Miley, In Cuba with Shafter 
(1899) ; and T. Roosevelt, The Rough Riders (1899). The 
navy may be followed in J. D. Long, The New American Navy 
(2 vols., 1903) ; E. S. Maclay, History of the United States Navy 
(3 vols., 1901, the third volume containing allegations that 
precipitated the Schley-Sampson controversy) ; G. E. Graham, 
ScMey and Santiago (1902) ; W. S. Schley, Forty-Jive Years 
under the Flag (1904) ; W. A. M. Goode, With Sampson through 
the War (1899). The public documents of the war are easily 
accessible, especially in the Annual Reports for 1898 of the 
Secretaries of War and Navy, and in the Foreign Relations 
volume for that year. The controversies after the war illumi- 
nated many details, particularly the Schley Inquiry (57th Con- 
gress, 1st Session, House Document, no. 485, Serial nos. 4370, 
4371), and the Miles-Eagan Inquiry (56th Congress, Ist Ses- 
sion. Senate Document, no. 270, Serial nos. 3870-3872). 



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CHAPTER XVn 

THEODOBE ROOSEVELT 

Out of the humiliating debates upon the war, on 
the capacity of Alger and Shafter, on the manage- 
ment of the commissary and the field hospitals, on 
the failure of Sampson and Shafter to cooperate, on 
the tactics and the alleged weakness of Schley, and 
on the diplomatic sincerity of McEinley, only one 
name caught the public ear. The only career that 
placed a soldier in line for political promotion was 
that of Theodore Eoosevelt, who was still under 
forty years of age, although he had lived a keen, 
aggressive, and public life for nearly twenty years. 
Just out of Harvard in 1880, Boosevelt entered 
the rough and tumble of New York politics. He 
was a reform legislator when Cleveland was gov- 
ernor, and an opponent of the nomination of Blaine 
in 1884. He did not fight the ticket or turn Mug- 
wump, for he had already formed a political philos- 
ophy, that only those who stayed within the party 
could be efficient in reform ; but he dropped out of 
the ranks and took up ranch life in the West. Har- 
rison made him a Civil Service Commissioner and 
supported him in a stem administration of the merit 
system. Before he left this office in 1895, to be- 
come Police Commissioner of New York City, the 
breezy and vigorous assaults of Boosevelt upon 



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THEODORE ROOSEVELT 277 

politioal oorraption had already marked Um as a 
reformer of a new type, who remained an active 
politician and a party man without losing his interest 
in reform. As police commissioner he gained new 
fame and more admirers. In 1897 he took the post 
of Assistant Secretary of the Navy and prepared for 
war. He had already found time to write many 
books on the West, reform, naval history, and out- 
door life. He resigned his post in April, 1898, on 
the eve of war, raised a regiment of volunteers, 
which the public speedily named the ^^ Bough Riders," 
kept his men in the center of the stage while there 
was fighting, risked and violated all theories of dis- 
cipline to attack the sanitary policy of the Adminis- 
tration in the autumn, and in October received the 
nomination of his party for Governor of New York, 
over the ill-concealed opposition of Thomas Collier 
Piatt. 

During the campaign of 1898 Roosevelt carried 
his candidacy to the voter in every part of the State. 
He spoke from rear platforms day after day. Rough 
Riders, in uniform, accompanied his party and rein- 
forced his appeal to mixed motives of good gov- 
ernment and patriotic fervor. He was elected in 
November, and on the same day the Republican con- 
trol of Congress was assured. It was made possible 
for the party to fulfill the last of the obligations laid 
upon it by the election of 1896. 

A currency act, passed in March, 1900, was the 
result of Republican success. It established the gold 
dollar by law as the standard of value, legalized the 
gold reserve at $150,000,000, and made it the duty 



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«78 THE NEW NATION 

of the Treasury to keep at a parity with gold 
the $818,000,000 of Civil War greenbacks, the 
$550,000,000 of silver and silver certificates, the 
$75,000,000 of Sherman Act treasury notes, as 
well as the national bank notes, which aggregated 
$800,000,000 in 1900. The law left the currency 
far from satisfactory in that it made it dependent 
upon redemption, and hence liable to sudden changes 
in value, but it silenced the fear of free-silver coinage* 
In the spring of 1900 Congress was forced to con- 
sider the basis of colonial government. Governments 
similar to those of the Territories were provided for 
Hawaii and Porto Kico, but a troublesome revolt 
prevented such treatment of the Philippine Islands. 
There had been a native insurrection in these islands 
before the Spanish War began, and the aid of the 
rebels had made it easier for the United States to 
overthrow the power of Spain. Instead of receiving 
a pledge of independence, as Cuba did, the islands 
became a territorial possession of the United States. 
In February, 1899, under the native leader, Emilio 
Aguinaldo, insurrection broke out against the United 
States and received the sympathy of large numbers 
of Americans. The spectacle of the United States 
subduing a spirit of independence in the Philippines 
aroused and stimulated the movement of anti-imperi- 
alism that had fought against the acquisition of the 
islands. The incompatibility of republican institu- 
tions and foreign colonies, the demoralizing influence 
of ruling on the ruling class, the lesson of the fall of 
Rome, were held up before the public. Carl Schurz 
was one of the leaders in the protest, and his f oUow- 



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THEODOBE ROOSEVELT 879 

ers included many whose names were already well 
known in the advocacy of tariff and civil service 
reform. In 1901 the Supreme Court upheld the 
constitutionality of expansion and imperial control. 
The people had already decided in their favor in 
1900. 

There was no contest for either nomination in the 
campaign of 1900. Bryan had established his right 
to the leadership that had come to him by chance in 
1896. Although conservative Democrats still dis- 
trusted him, their voices were drowned by the popu- 
lar approval of his honesty and humanity. ^^Four 
years ago," said Altgeld, in the Democratic Conven- 
tion at Kansas City, ^^we quit trimming, we quit 
using language that has a double meaning. . . . 
We went forth armed with that strength that comes 
from candor and sincerity and we fought the great- 
est campaign ever waged on the American continent. 
• • . [For] the first time in the history of this Re- 
public the Democracy of America have risen up in 
favor of one man.'* On a platform that repeated the 
currency demands of 1896 and denounced imperial- 
ism, Bryan was unanimously renominated, with Adlai 
E. Stevenson for the Vice-Presidency. 

The emphatic denunciation of imperialism brought 
to Bryan and Stevenson the support of a group 
of independents, — the " hold-your-nose-and-vote " 
group, as the Republican press called them, — who 
were strong for the gold standard, but believed that 
currency was less fundamental than imperialism. 
The Republican party had accepted and approved 
the war and the benevolent intentions of the United 



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280 THE NEW NATION 

States, and had renominated McKinley at Philadel- 
phia, without a dissenting voice. Vice-FreBident 
Hobart had died in office, or the original ticket 
might have been continued. As a substitute, rumor 
had attacked the name of Ooyemor Boosevelt, while 
Senator Piatt, preferring not to have him reelected 
Governor of New York, had encouraged his boom 
for the Vice-Presidency. Repeatedly, in the spring 
of 1900, Roosevelt declared that he would not seek 
or accept the Yice-Presidency. Hanna and McKinley 
did not desire him on the ticket, but at the conven- 
tion the delegates broke down all resistance and 
forced him to accept the nomination. 

The policy of dignity, which McKinley had as- 
sumed in 1896, was continued by him in 1900, but 
the vice-presidential candidate proved the equal of 
Bryan as a campaigner. In hundreds of speeches, 
reaching nearly every State, they carried their per- 
sonality to the voters. The two issues, imperialism 
and free silver, divided the voters along difEereat 
lines, but the Administration had an economic basis 
for support in the recovery of business on every 
hand. The Republicans took credit for the genenJ 
and abundant prosperity, and their cartoonists em« 
phasized the idea of the ^^full dinner pail*' as a 
reason for continued support. A smaller percentage 
of citizens voted than in 1896, for the issue was less 
clear than it had been then. Many who were discon- 
tented with both candidates voted with the Prohibi- 
tionists or Socialists. The Republican ticket was 
elected, with 292 electoral votes, as against 155 re- 
ceived by Bryan and Stevenson. A continuance, of 



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THEODORE BOOSEVELT 281 

the Bepublican control of Congress was assured at 
the same time. 

William McKinley was the first President after 
Grant to receive a second consecutive term. He made 
few changes in his Cabinet in 1901. Elihu Boot 
remained in the War Department, for the sake of 
which he had refused to consider the Vice-Presidency, 
and strove for order in the Philippines, in Cuba, and 
in the United States Army itself. John Hay, as 
Secretary of State, continued his correspondence with 
the Powers over the Chinese revolt, without a break. 

Only Seward and John Quincy Adams can rival 
John Hay as successful American Ministers of For- 
eign Affairs. Bom in the Middle West in 1888, Hay 
served in Lincoln's household as a private secretary 
throughout the Civil War. He held minor appoint- 
ments after this and alternated diplomatic experience 
with literary production. The monumental Life of 
Abrcbbxim, Lincoln was partly his work. His grace- 
ful verse gained for him a wide reading. His anony- 
mous novel, The Breadwinners^ was an important 
document in the early labor movement. McKinley 
sent him to London as Ambassador in 1897, follow- 
ing the tradition that only the best in the United 
States may go to the Court of St. James, and had 
recalled him to be Secretary of State in the fall of 
1898. The Boxer outbreak in China in 1900 gave 
the first opening to the new diplomacy of the United 
States, broadened out of its insularity by the Span- 
ish War and interested in the attainment of inter- 
national ideas. Hay led in the adjustment which 
settled the Chinese claims, opened the door of China 



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282 THE NEW NATION 

to the oommerce of the world, and prevented her 
dismemberment. He was still engaged in this cor- 
respondence when President McEinley was murdered 
by an anarchist, and Theodore Soosevelt became 
President of the United States, September 14, 1901. 

In the hurried inaugural ceremony held in the 
Buffalo residence in which McKinley died, Boose- 
velt declared his intention to continue the term as 
his predecessor had begun it. He insisted that all 
the members of the Cabinet should remain with him, 
as they did for considerable periods. He took up the 
work where it had been dropped, and for some 
months it was not apparent that a change had been 
made from a party administration to a personal 
administration. The suave and cordial tolerance of 
McKinley was succeeded by the aggressive certainty 
of his successor. Through John Hay's skillful hand 
this new tone made a deeper impression on the 
politics of the world than had that of any President 
since Washington gave forth the doctrine of neu- 
trality. 

Cuba was a pending problem. The American army, 
under General Leonard Wood, had cleaned up the 
island. The medical service had learned to isolate 
the mosquito, and had expelled the scourge of yellow 
fever. The natives formed a constitution which be- 
came effective on May 20, 1902. On this day the 
United States withdrew from the new Eepublic, leav- 
ing it to manage its own affairs, subject only to a 
pledge that it would forever maintain its independ- 
ence, that it would incur no debt without providing 
the means for settling it, and that the United States 



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THEODOBE ROOSEVELT 283 

might lawfully intervene to protect its independence or 
maintain responsible government. In the winter of 
1901-02 Roosevelt urged Congress to adopt a policy 
of commercial reciprocity with Cuba. He was sup- 
ported in this by opinion in Cuba, and by officials 
of the American Sugar Trust, but was opposed in 
the Senate by a combination of beet-sugar Republi- 
cans and cane-sugar Democrats. The measure failed 
in 1902, creating bad feeling between President 
and Congress, but a treaty of modified reciprocity 
was ratified in 1903. 

In 1902 the United States became the first suitor 
to test the efficacy of the new court of arbitration at 
The Hague. In 1898 the Czar of Russia had invited 
the countries represented at St. Petersburg to join 
in a conference upon disarmament. His motives were 
questioned and derided, but the conference met the 
next summer at Huis ten Bosch, the summer palace 
of the Queen of the Netherlands, at The Hague. 
Here the plan of disarmament proved futile, but a 
great treaty for the settlement of international dis- 
putes was accepted by the countries present. It 
seemed probable that the Hague Court, thus created, 
would die of neglect, but President Roosevelt, ap- 
pealed to by an advocate of peace, produced a tri- 
fling case and submitted it to arbitration. The Pious 
Fund dispute, with Mexico and the United States as 
suitors, involved the control of church funds in Cali* 
fomia. The suit was won by the United States, but 
derived its chief importance from being the first 
Hague settlement. 

The pledge of the United States for Cuban inde- 



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284 THE NEW NATION 

pendenoe had hardly been fulfilled when another 
Latin Bepublic became mvolved in troable. Vene- 
zuela, toni by war, had incurred obligations to Euro- 
pean creditors, and had defaulted in the payments 
upon them. In December, 1902, Great Britain and 
Germany announced a blockade of the Venezuelan 
ports in retaliation, and they were soon joined by 
other Powers with similar claims. Disclaiming intent 
to protect Venezuela in defaulting, Booseyelt urged 
the European claimants to abandon force for arbitra- 
tion. Under his leadership joint commissions were 
finally established, and in 1903 the legal technicali- 
ties involved were sent to The Hague. The episode in- 
volved a new interpretation of the Monroe Doctrine, 
making it clear that unless the United States wished 
to protect the South American Bepublics in the eva- 
sion of their debts it must assume some responsibility 
for the honest settlement of them. 

The boundary of Alaska next became a subject for 
arbitration. Since the valley of the Yukon had at- 
tracted its first great migration in the summer of 
1897 the mining-camps had steadily increased in im- 
portance. Many of these were on the Canadian side 
of the meridian of 141^, and all were reached either 
by the river steamers or the trails from the south. 
The most important ports of entry were Dyea and 
Skaguay, at the head of the Lynn Canal, a long fiord 
projecting some ninety miles into the continent. From 
these ports the prospector plunged inland, climbed 
the Chilkoot or the Chilkat Pass, and followed one 
of several overland trails to the Upper Yukon. 

The importance given to Dyea and Skaguay re- 



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THEODORE ROOSEVELT 286 

vived the question of their ownership and with this 
the boundary of Alaska. When Seward bought 
Alaska for the United States in 1867 he received it 
with the boundaries agreed upon at St. Petersburg 
between England and Russia in 1825. These fol- 
lowed the meridian of 141° from Mount St. Elias to 
the Arctic Ocean, and followed the irregularities of 
the shore-line southeast from that mountain to the 
Pacific at 54° 40% North Latitude. The narrow coast 
strip was described as following the windings (^sirm- 
osites) of the shore, bounded by the shore mountains 
if possible, but in no case to be more than thirty miles 
wide. The narrow Lyim Canal pierces the thirty- 
mile strip, and the dispute turned chiefly upon inter- 
pretation : whether the canal should be regarded as a 
ainuosite of the shore, around which the boundary 
must go, or as a stream which it might properly 
cross. 

For thirty years after 1867 the British and Cana- 
dian gOYcmm^it maps treated the Lynn Canal and 
other similar fiords as American, but it became con- 
venient for Canada, after 1897, to urge that the boun- 
dary should cross the canal and leave Dyea and 
Skaguay on British soil. A Canadian and American 
Joint High Commission, meeting in 1898, had been 
unable to adjust the controversy. In 1903 it was 
submitted to a tribunal, three to a side, which sat in 
London. It was doubtful whether the three Ameri- 
can adjudicators. Root, Lodge, and Turner, were all 
" jurists of repute," as the treaty provided, but the 
arguments of the American counsel convinced Lord 
Chief Justice Alverstone, one of the British adjudi- 



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286 THE NEW NATION 

oators, aud his vote, added to the American three, 
gave a verdict that sustained most of the claimis of 
the United States. 

In Cuba and Venezuela, at The Hague, and in the 
Alaskan matter, Boosevelt and Hay showed at once 
a firmness and a reasonableness that attracted Euro- 
pean attention to American diplomacy as never be- 
fore. The subject of American diplomacy became a 
common study in American universities. England 
and Germany appeared to be desirous of conciliating 
the United States. The German Emperor bought a 
steam yacht in the United States, sent his brother. 
Prince Henry of Prussia, to attend the launching, and 
sent as Ambassador a German nobleman who had 
long been a personal friend of the President. The 
reputation for firmness was enhanced, but that for 
fairness was lessened by the next episode, which in- 
volved the G)lombian State of Panama. 

The dangerous voyage of the Oregon in 1898 
completed the conviction of the United States that 
an isthmian canal must be constructed, and that the 
Clayton-Bulwer Treaty was no longer adequate. The 
activity of De Lesseps and his French company at 
Panama had raised the question about 1880, but 
nothing had been done to weaken the treaty that 
obstructed American construction and control until 
Hay undertook a negotiation under the direction of 
McKinley in the fall of 1899. Congress was in the 
midst of a debate over a Nicaragua canal scheme 
when it was announced that on February 6, 1900, 
Hay and Lord Pauncef ote had signed a treaty open- 
ing the canal to American construction, but provid- 



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THEODORE BOOSEVELT 287 

ing for its neutralization. The treaty forbade the 
fortification of the canal or its use as an instrument 
of war. It was killed by amendment in the Senate, 
but on November 18, 1901, Lord Paunoefote signed 
a second treaty, by which Grreat Britain waived all 
her old rights save that of equal treatment for all 
users of the canal, and left the future waterway to 
the discretion of the United States. With the way 
thus opened, — for the Senate promptly confirmed 
this treaty, — a new study of routes and methods 
was hurried to completion. 

An Isthmian Commission, created by the United 
States in 1899, was ready to report upon a route 
when the second Hay-Pauncefote Treaty was con- 
cluded. The practicable routes had been reduced in 
number to two, at Panama, and through Nicaragua. 
The former was under the control of the French 
company, which placed so high a price upon its con- 
cession that the commission recommended the Nicar- 
agua route as, on the whole, more available. In Con- 
gress there was a strong predisposition in favor of 
this same route, but during 1902 this was weakened. 
Senator Hanna preferred the Panama route and 
worked effectively for it. The French Panama Com- 
pany, frightened by the popularity of the Nicaragua 
route, reduced its price. The earthquake and vol- 
canic eruption on the Island of Martinique reminded 
the world that Nicaragua was nearer the zone of 
active volcanic life, and hence more exposed to dan- 
ger, than Panama. In Jxme Congress empowered 
the President to select the route and build a canal 
at once. 



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888 THE NEW NATION 

Negotiations witb Colombia for the rigbt to build 
at Panama dragged on through 1902 and 1903. 
Weakened by continuous revolution, that Eepublio 
realized that the isthmian right of way was its most 
valuable asset. Only after prolonged discussion did 
its Grovemment autiiorize its Minister at Washing- 
ton to sign a treaty reserving Colombian sovereignty 
over the strip, but giving to the United States the 
canal concession in return for 910,000,000 in cash 
and an annuity of $250,000. This treaty was signed 
in Washington in January, 1908, and was received 
as a triumph for the diplomacy of Hay and Boose- 
velt It was ratified in March by the Senate, in spite 
of a last filibuster by the friends of Nicaragua, but 
the Colombian Congress rejected the treaty and ad- 
journed. 

By the autumn of 1908 Roosevelt had determined 
upon the route at Panama, the French company had 
become eager to sell, and the Colombians Uving on 
the Isthmus were anxious to have the negotiations 
ended and the digging begun. In October the Pres- 
ident wrote to an intimate friend hoping that there 
might be a revolt of the Isthmus against Colombia, 
though disdaiming any intent to provoke one. The 
friend made the wish public over his own name, but 
before it appeared in print the revolt had taken 
place. It was known in advance to the State Depart- 
ment, which telegraphed on November 8, 1908, ask- 
ing when it was to *be precipitated. It took place 
later on this day, the independence of the Eepublic 
of Panama was proclaimed, the United States pre- 
vented Colombia from repressing it by force, recog- 



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THEODORE BOOSEVELT 289 

nized the new Republic by cable, and on November 
18 signed at Washington a treaty with Panama 
granting the canal concession. ^^I took Panama,'* 
boasted President Roosevelt some years later, when 
oritios denounced his policy as a robbery of a weak 
neighbor. 

The construction of a canal proceeded rapidly, 
once the diplomatic entanglements had been brushed 
away. The incidental problems of sanitation, labor, 
supplies, and engineering were solved promptly and 
effectively. Congress poured money into the enter- 
prise without restraint, the first boats were passed 
through the locks in 1914, and in 1915 the formal 
opening of the canal was celebrated by a naval pro- 
cession at the Isthmus and an Exposition at San 
Francisco. 

Vigor and certainty of purpose marked the con- 
duct of domestic affairs as well as foreign, but the 
necessity for the concurrence in these by Congress 
made the former results less striking than the latter. 
The appointments of President Roosevelt were such 
as might be expected from one who had himself de- 
voted six years to the Civil Service Commission. 
Few of them met with opposition from the reform 
element. In the South he became involved with local 
public opinion, especially in the cases of a negro 
postmistress at Indianola, Mississippi, and the negro 
collector of the port of Charleston, in which he main- 
tained that although federal appointments ought 
generally to go to persons acceptable in their dis- 
tricts, the door of opportunity must not be shut 
against the negro. Within a few weeks of his in- 



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290 THE NEW NATION 

auguration lie precipitated a severe discussion npon 
the status of the negro by entertaining Booker T. 
Washington at the White House. He disciplined 
Republican leaders in the South who endeavored to 
exclude negroes from the party organization and to 
build up a ^^ lily-white " Republican machine. 

The administrative duties of the United States 
expanded rapidly after the Spanish War. The ex- 
tension of scientific functions beginning in the eighties 
continued until the volume of work forced the crea" 
tiou of new offices. Federal civil employees numbered 
107,000 in 1880, 166,000 in 1890, 256,000 m 1900, 
and 884,000 in 1910. Among the newer scientific 
activities was included that of the reclamation of 
the arid or semi-arid lands of the Southwest. 

The region between the Missouri River and the 
Sierra Nevada had been regarded as uninhabitable 
since the days of Pike. Known as the ^^ American 
Desert," it figured in the atlases as a place of sand 
and aridity, and became the home chosen for the In- 
dian tribes between 1825 and 1840. Under the in- 
fluence of migration to Oregon and California the 
real character of the Far West became known, but 
not until the continental railways were finished did 
many inhabitants enter it. In 1889 and 1890 the 
" Omnibus " States were admitted, embracing all the 
northwest half of the old desert. Utah followed in 
1896. Arizona and New Mexico and Oklahoma de- 
veloped rapidly after 1890 and were all demanding 
statehood in 1902. 

The advance of population into the Far West 
revealed the existence of large areas in which an 



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THEODOBE ROOSEVELT 291 

abundant agriculture could be produced through ir- 
rigation. Private means were inadequate for this 
and the land laws discouraged it. A demand for 
federal reclamation appeared in the eighties. In 
1889 a survey of available sites for reservoirs was 
made by government engineers, and in 1902 Roose- 
velt cooperated with the Far-Western Congressmen 
in securing the passage of the Newlands Reclama- 
tion Act. By this bill the proceeds of land sales in 
the arid States became a fund to be used by the re- 
clamation service for the construction of great pub- 
lic irrigation works. In the succeeding years dams, 
tunnels, and ditches were undertaken that were 
rivaled in magnitude only by the railroad tunnels 
at New York and the excavations at Panama. 

The aggressive assurance with which the Roose- 
velt Administration handled the problems of diplo- 
macy and administration created for the President 
a wide and unusual popularity, which was strongest 
in the West. Many critics, also, were created, who 
distrusted personal influence when injected into 
government, and who doubted the solidity of Roose- 
velt's judgment. Personal altercations, in which the 
President was often the aggressor, were numerous. 
Among professional politicians dislike was mingled 
with fear because the President had established per- 
sonal relations immediately with their constituents. 
Under President McKinley the state delegations in 
Congress had controlled the appointive federal offices 
of their States, and had been secure in their personal 
standing ; under Roosevelt their control of appoint- 
ments was less secure. When matters of legislation 



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29* THE NEW NATION 

were taken up, this dissatis&ction among members 
of Congress was a serious obstacle to the attainment 
of constructive laws. 

BIBLIOGRAPHICAL NOTE 

After the Spanish War the Becondary materials for the his- 
tory of the United States become fragmentary and unsatisfac- 
tory. Peck, Andrews, and J. H. Latan^, America as a World 
Power, 1897-1907 (in The American NaHon, vol. 26, 1907), 
are the best general guides. The facts of campaigns are con- 
tained in E. Stanwood's second volume, — History of the Pres- 
idency from 1897 to 1909 (1912, with an appendix containing 
the platforms of 1912), but the Annual CydopiBdia stopped 
publication after 1902, and left no good successor. The vari- 
ous year-books should be consulted, and the files of the mag^ 
zines, which steadily improve in historical value : Nation, 
Harper's Weekly, Comer's Weekly, Independent, Outlook, Liter- 
ary Digest, and the Review of Reviews. Articles in these and 
other periodicals, dealing with episodes occurring after 1898, 
may be reached through Poole's Indexes. The American Jour^ 
nal of Interfiational Law. and the American Political Science 
Review are typical of the new technical periodicals. Extensive 
contributions to the history of international arbitration have 
been made by F. W. Rolls, J. B. Scott, and W. L Hull. There 
is, of course, no critical biography of Theodore Roosevelt, 
although there are numerous panegyrics by F. E. Lenpp, J. A. 
Riis, J. Morgan, and others, and some autobiographical papers 
which appeared first in the Oudook (1913), and later as Fifty 
Years of My Life (1913). The later Messages of McEinley 
and those of his successors are scattered among the govern- 
ment documents, which are to be found in many libraries. 
The Second Battle (1900), by W. J. Bryan, is autobiographic, 
as is A. £. Stevenson, SomOhing of Men I Have Known (1909). 



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CHAPTER XVni 

BIG BUSINESS 

The panic of 1893 ended the first period of the 
trust problem. The preceding years had been years 
of formation and experiment. They had been accom- 
panied by an increasing popular distaste for com- 
binations of capital and a growing activity in the 
organization of labor. The Sherman Law of 1890 
had temporarily quieted the anti-trust movement, 
while economic depression had checked the extra- 
vagance of speculation that had been prevalent 
everywhere. During the years of depression atten- 
tion was shifted to tariff and currency, but a new 
era began with the recurrence of prosperity about 
1897. 

The industrial revival was marked by an exten- 
sion of the scope of industry, as every similar pe- 
riod had been. After the panic of 1837 the railroad 
had appeared among the important new activities of 
American society. Improvements in manufacturing 
technique followed the panic of 1857. After 1873 the 
varied applications of electricity to industry and com^ 
munication gave a new direction to investment. After 
1893, with every preceding activity stimulated and 
extended, there came the first successful construction 
of a trackless engine — the motor-car — and the re- 
building of the physical plants of cities, railways, and 



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294 THE NEW NATION 

Buburban resideDces. The recovery of confidence came 
after 1896, and before the end of the century gpecu- 
lation was at full blast. 

The drift toward monopoly was marked. The trusts 
had already shown their profitable character. Con- 
centration had been made possible by the develop- 
ment of communication in the eighties, and grew now 
on a larger scale than the eighties had imagined. 
Within the field of transportation the promoters 
reorganized the railroads after the panic, reduced 
their number, and gathered their control into the 
hands of a few men. 

The railway system by 1900, with 198,000 miles 
of track, was directed by a few powerful groups 
of roads. In the East the New York Central 
and Pennsylvania systems were dominant. In the 
West the continental railways formed the basis of 
new organizations. The keenest interest gathered 
round the reconstruction of the Union Pacific by 
Edward H. Harriman, who reorganized its finances 
after 1897. The Union Pacific had been forced into 
combination by its location and its neighbors. Bun- 
ning from Omaha to Ogden it was dependent for 
through traffic upon the Central Pacific that ran 
from Ogden to San Francisco. When the latter came 
under the control of the California capitalists who 
owned the Southern Pacific lines, the Union Pacific 
was driven to build or buy outlets of its own, and 
extended into Oregon and Texas as the result. Jay 
Gould had begun the consolidation in the eighties 
and Harriman continued it after the panic of 1893. 
He rebuilt the main line and improved the value and 



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BIG BUSINESS 295 

credit of his property. In 1901 his road borrowed 
money with which to buy a controlling interest in the 
Central Pacifie and Southern Pacific — the Hunt- 
ington lines, — and thereafter the Harriman system, 
with two complete railroads from the Mississippi to 
the Pacific, was beyond the reach of hostile competi- 
tion. 

The Interstate Commerce Law of 1887 stimulated 
combination among the railroads, since it made pools 
and rate agreements illegal. The altematiye to such 
agreements was destructive competition, since no two 
lines were of exactly equal strength. To avoid this, 
the stronger lines bought or leased the weaker, with 
which they might not cooperate, but which they might 
buy outright. Harriman, successful with his South- 
western system, tried in 1901 to buy the Northern 
Pacific, too, and came into direct conflict with another 
group of railway owners. 

The Northern Pacific had been supplemented after 
1893 by the Great Northern, which James J. Hill 
had built without a subsidy. These two roads, and 
the Chicago, Burlington & Quincy, covered the 
Northwest as Harriman's lines covered the South- 
west. They were so placed that with common man- 
agement they could be more efiFective than with 
rivalry. The owners of the Great Northern and the 
Burlington, James J. Hill and J. Pierpont Morgan, 
were on the verge of a general consolidation when 
Harriman tried to buy a control of the Northern 
Pacific. They struggled to retain it and succeeded, 
but their competition raised its stock to one thou- 
sand per share, causing a stock exchange panic on 



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296 THE NEW NATION 

May 9, 1901. Only the speculators suffered by the 
panic, but public attention was drawn by it to the 
gigantic size of the combinations which held arbi- 
trary control over nearly half the United States* 

Minor consolidations followed these in 1902 and 
1903, but none aroused so much fear as the Northern 
Securities Company of New Jersey, the holding com- 
pany in whose hands Hill and Morgan determined 
to put the control of their lines. The fate of any 
single company could be determined by the owner- 
ship of not over fifty-one per cent of its stock. If 
this was owned by another corporation, a similar 
proportion of the stock of the latter would control 
the whole. The holding company was a machine 
whereby capital could control property several times 
its bulk. The Governors of the Northwest States, 
alarmed at the monopolization of their railways, pro- 
tested and started suits. It was claimed that this sort 
of merging of railroads was, after all, a conspiracy 
in restraint of trade. In March, 1902, President 
Eoosevelt instructed his Attorney-General, Philan- 
der C. £[nox, to test the Sherman Act of 1890, and 
bring suit under it for the dissolution of the North- 
em Securities Company. For several years after 
1897 foreign affairs and big business had been dom- 
inant in the American mind, which had admired their 
bigness and activity, but now the social consequences 
of big business aroused the fears of the nation. In 
1903 Congress passed the Elkins Law, forbidding 
railroads to give rebates to favored customers, and 
an Expedition Law, to make the wheels of justice 
move more rapidly when prosecutions imder the 



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BIG BUSINESS 297 

Sherman and Interstate Commerce Laws were under 
way. 

Industrial consolidation, like that of the railways, 
began again in 1897, and many of the new corpora- 
tions assumed a type that marked an evolution for 
the trust. In the earlier period the aim of the trust 
had been to eliminate competition by gathering under 
a single control the whole of a given business. Oil, 
sugar, steel, whiskey, and tobacco were notable in- 
stances in which extreme consolidation had been 
reached. Competition changed its character as con- 
solidation increased. It ceased to mean a struggle 
between rivals in the same trade, and came to mean a 
struggle between successive processes of manufacture. 
The mine^wner struggled for his profits with the 
smelter who used his ore. The smelter struggled with 
the steel manufacturer in the same way. Control of 
single industries left untouched this newer competi- 
tion, but an integration of great groups of related 
processes promised to avoid it. 

In 1901 the greatest of the integrated trusts, the 
United States Steel Corporation, was created. The 
iron and steel industry had been expanding since 
the Bessemer and other commercial processes for the 
manufacture of steel had made it available for rail- 
way, bridge, and architectural construction. Andrew 
Carnegie, with his Pittsburg mills, was the most suc- 
cessful producer. His partnership controlled by 1901 
about twenty-five per cent of the output of finished 
steel. He already included many related and succes- 
sive processes, but now he allowed his works to be 
merged with those of his rivals into a large com- 



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«08 THE NEW NATION 

pany. The resulting United States Steel Corporation 
owned and operated the ore deposits and the mines, 
the necessary ooal fields, the local railways and freight 
steamers, the smelters and the blast furnaces, the 
rolling mills and the factories in which iron and steel 
were manufactured into a multitude of shapes for 
sale. With a New Jersey charter it was capital- 
ized at $1,100,000,000, and drew attention to the 
industrial phase of the trust problem much as Har- 
riman. Hill, and Morgan had drawn it to the rail- 
roads. 

Promotion of new trusts, with billions of aggre- 
gated capital, was the order of the day from 1897 to 
1902. The fear of monopoly was speedily aroused, 
and in 1898 Congress created an Industrial Com- 
mission, whose nineteen volumes of reports contain 
the facts upon which the history of the trusts must 
be based. In the fall of 1899 there met in Chicago a 
great conference on the trusts, where business men, 
economists, and politicians discussed the economic 
and social possibilities of the movement. A willing- 
ness to hear and perhaps to rely on the judgment 
of experts was shown in the discussions over the 
trusts. It marked a change in the American attitude 
toward government. By 1902 the demand for a solu- 
tion of the trust problem was heard repeatedly, but 
there was little agreement as to whether the trusts 
were good or bad, or whether they should be abol- 
ished, regulated, or owned outright by the Govern- 
ment. It was not even certain what powers the United 
States possessed to regulate general industry, but a 
group of Supreme Court cases suggested that the 



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BIG BUSINESS 299 

power oould be found. In the Trans-Missouri Freight 
Case (1897), the Supreme Court declared that the 
Sherman Law applied to railway conspiracies, and 
in the Addystone Pipe Case (1898), a decision 
against an industrial combination, written by Circuit 
Judge William H. Taft, was upheld by the court of 
last appeal. The Northern Securities Case, started 
in 1902, was pushed to a successful end in 1904, 
when it became apparent that legal control could be 
exercised if Congress so desired. 

Labor followed the course of industry and trans- 
portation, becoming stronger and better united, and 
showing a keen jealousy of centralized control. The 
years of trust promotion were years of notable strikes 
and of episodes which drew attention to the social 
results of industrial concentration. Sometimes the 
trust had labor at a disadvantage, as was shown in 
the strike against the Steel Corporation by the Amal- 
gamated Association in 1901. In 1892 this union had 
conducted a great strike against the Carnegie Works 
and had lost public sympathy and the strike. Its men 
had committed open violence, and an anarchistic sym- 
pathizer had tried to murder Carnegie's representative 
at Homestead, Heniy C. Frick. In 1901 the strike 
affected the unionized mills of the Steel Corporation, 
but that trust had only to close down the mills in- 
volved and transfer pending contracts to other mills, 
remote and non-unionized. The strike collapsed be- 
cause of the superior organization of the trust. 

More important than the steel strike in its effect 
upon the public was the strike of the miners in the 
anthracite coal fields of Peoosylvania. In 1900 these 



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800 THE NEW NATION 

workers were organized by the United Mine Workers 
of America, under the leadership of John MitchelL 
They gained concessions in a strike in this year, 
partly because the strike threatened to disturb politi- 
cal conditions and embarrass the Republican national 
ticket. The mine-owners, most of whom were Sepub- 
licans, were persuaded by Hanna and others to end the 
quarrel. 

In the spring of 1902 the strike broke out again, 
turning largely upon the question of the formal recog* 
nition of the union. All through the summer John 
Mitchell held his followers together, gaining an un- 
usual degree of public sympathy for his cause. In 
the autumn, with both sides obstinate, a third party, 
the public, took an interest in the strike. The pros- 
pect of a coalless winter alarmed political leaders and 
^tizens in general. It was felt that public interest was 
luperior to the claims of either contestant, but there 
was neither law nor recognized machineiy through 
which the public could protect itself. At this stage, 
in October, 1902, President Roosevelt secretly 
reached the intention " to send in the United States 
Army to take possession of the coal fields" if neces- 
sary. He called the operators and Mitchell to a 
conference at the White House, spoke to them 
as a citizen upon their duty to serve the public, 
and with rising public opinion behind him and 
supporting him, forced the owners to consent to 
an arbitration of the points at issue. The men re- 
turned to work, pleased with the President, to 
whose interference they and the public owed in- 
dustrial peace. 



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BIG BUSINESS SOI 

In 1903 another miners' union, the Western Fed- 
eration of Miners, conducted a great strike in the 
mines of Cripple Creek. Public opinion in Colorado 
knew no middle class. The miners and the operators 
represented the two chief interests of the section. 
Hard feeling and violence accompanied the strike. 
The malicious murder of non-union men added to the 
bitterness, which the presence of the militia and a 
series of arbitrary arrests could not allay. The strike 
wa49 complicated by the presence among the workers 
of a strong element of Socialists, whose ends were 
political as well as economic. The leaders of the Fed- 
eration, Moyer and Haywood, were Socialists, and for 
them the strike was only a beginning of political 
revolution. The strike lasted until the outraged citi- 
zens of Cripple Creek formed a vigilance committee 
and deported the chief agitators to Kansas. 

Socialism played an increasing part in labor discus- 
sions after 1897. A Socialist Labor party had pre- 
sented a ticket and received a few votes in 1892 and 
1896, but socialism had not taken a strong hold on 
the American imagination. The swelling immigration 
that followed the new prosperity brought new life to 
socialism. In 1900 a Social Democratic party polled 
94,000 votes for Eugene V. Debs for President. In 
1904, with the same candidate, it received 402,000 
votes. Society was reorganizing amid the industrial 
changes, while the discontented classes were growing 
more coherent and constructive. 

President Roosevelt met the changes in transporta- 
tion, industry, and labor with vigor. He invoked the 
Sherman Law against the Northern Securities Com- 



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302 THE NEW NATION 

pany. He brought suits against certain of the trusts 
which he stigmatized as the ^' bad trusts/' Not all 
concentration, he urged, was undesirable. Capital, 
like labor, had its rights, but it must obey the law. 
Partly through his efforts Congress created in 1903 
a new administrative department of Commerce and 
Labor. George B. Cortelyou became the first Secre- 
tary of this department* Through its Bureaus of Cor- 
porations and of Labor there was new activity in the 
investigation of the facts of the industrial move- 
ment. 

The vigor with which the President directed for- 
eign relations, interfered in big business, and espoused 
the cause of labor produced a breach between him 
and many of the regular leaders of the party. 
Through two campaigns Marcus A. Hanna had 
worked on the theory that the Kepublican party was 
the party of business, and had attracted to its support 
all who believed this or had something to make out 
of it. Many of these Bepublicans could not imder- 
stand what Boosevelt was trying to do, and main- 
tained an opposition, silent or open, to his policies. 

The popularity of Hanna was used by many Be- 
publicans to offset the popularity of Boosevelt. Before 
1896 Hanna had taken little part in public politics. 
Entering the Senate in 1897, he developed great in- 
fluence. By 1900 he began to speak in public with 
directness and effect, and to undo the work of the 
cartoonists who had misrepresented his character. He 
interfered to bring peace in the anthracite regions in 
1900, became interested in the labor problem on its 
own account, and discovered that he was popular. 



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BIG BUSINESS SOS 

He was essentially a direct and honest man, who had 
had no reason to doubt that it was the chief end of gov- 
ernment to conserve business. As he came into touch 
with public affairs he broadened, saw new responsi- 
bilities for capital, and had a new understanding of 
the wants of labor. The only personality that even 
threatened to rival that of Boosevelt in 1904 was 
that of ^^ Uncle Mark" Hanna. 

Boosevelt had been made Vice-President to get rid 
of him in New York. The single life that stood be- 
tween him and the White House was removed by an 
assassin, and as a President by accident he desired to 
establish himself and secure a nomination on his own 
account in 1904. By the summer of 1902 he appre- 
ciated the growing interest in the problems of capi- 
tal and labor. A speaking tour in 1902 gave him a 
chance to demand a ^^ square deal " for all, and the 
control of the trusts. From some sections of the 
West came the suggestion that the way to approach 
the trusts was through the tariff. 

The Dingley Tariff was unpopular with the Kepub- 
lican farmers of the Northwest, and for some years 
they tolerated it in sileuce as a test of party loyalty. 
In 1902 a liberal faction, controlled by Governor 
Albert B. Cummins, captured the Iowa convention 
and demanded a revision of the more extreme sched- 
ules. The belief that the tariff was the "mother of 
trusts" was spreading, and the Iowa idea gained 
wide acceptance. In Congress, in the session of 1902, 
the Eepublican organization had shown the stubborn- 
ness with which any opening in the tariff wall would 
be opposed. 



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S04 THE NEW NATION 

Cuba was set free in the spring of 1902, her gov- 
ernment having been formed under the guidance of 
the United States. The duty to aid the young Re- 
public, and in particular to mitigate the severities of 
the Dingley Tariff impressed the President, who used 
all his influence to get such legislation from Con- 
gpress. He failed signally, raising only a new issue 
by his attempt to coerce Congress. His speeches in 
the summer showed a willingness to revise the tariff, 
while his interference in the coal strike in the autumn 
showed his willingness to oppose the ends of capital. 
How far he would go in breaking with the leaders of 
his party was unknown, but their disposition to ^* stand 
pat " and do nothing with the tariff was marked be- 
fore the end of 1902. 

In 1902 it became a habit of Eepublican state 
conventions to demand the renomination of Boose- 
velt in 1904. Whatever his effect upon the party- 
leaders, the rank and file liked him and believed in 
him, while his personal popularity among Democrats 
led many to think his strength greater than it was. 
His candidacy was formal and authorized, but his 
opponents hoped that Hanna might be induced to try 
to defeat him. In 1903 the Ohio convention, with the 
consent of Hanna, approved the candidacy of Eoose- 
velt, and early in 1904 the death of Hanna removed 
the last hope of Eoosevelt's Eepublican opponents. 
The delegates went to a national convention in 
Chicago, for which the procedure had all been ar- 
ranged at the White House, where it had been de- 
termined that Elihu Root should be temporary chair- 
man, and that Joseph G. Cannon, the Speaker, should 



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BIG BUSINESS SOS 

be permanent chainnan. Through these the conven- 
tion registered the reuomination of Boosevelt and 
selected Charles W. Fairbanks, of Indiana, as Vice- 
President. 

In the Democratic parfy the forces that had dom- 
inated in 1896 and 1900 had lost control. William 
Jennings Bryan, after two defeats, was not a candi- 
date in 1904. He had become a lay preacher on 
political subjects, lecturing and speaking constantly 
in all parts of the United States, and reinforcing his 
political views in the columns of his weekly Commoner^ 
which he founded after his defeat in 1900. Roose- 
velt had adopted many of his fundamental themes, 
but Bryan retained an increasing popularity as did 
the President, and, like the latter, had relations of 
doubtful cordiality with the leaders of his own party. 
The Cleveland wing of the Democrats still believed 
Bryan to be dangerous and unsound upon financial 
matters, and some of them made overtures to Cleve- 
land to be a candidate for a third term himseU. His 
emphatic refusal to reenter politics compelled the 
conservatives to find a new candidate. Judge Alton 
B. Parker, of New York, was their choice. The 
owner of the most notorious of the sensational news- 
papers, William Randolph Hearst, offered himself. 
Several other candidates were presented to the Demo- 
cratic Convention at Chicago, but Parker received 
the nomination, over the bitter opposition of Bryan. 
When a doubt arose as to his status on the silver issue, 
Judge Parker telegraphed to the convention that he 
regarded '' the gold standard as firnJy and irrevoc- 
ably established." Bryan supported the ticket, Parker 



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806 THE NEW NATION 

and Henry G. Davis of West Virginia, but without 
enthusiasm. 

There was no issue that clearly divided the parties 
in the campaign of 1904. Boose velt asked for an in- 
dorsement of his Administration and for approval 
of his general theory of a " square deal," but it was 
obvious that his party associates were less enthusi- 
astic for reform than he, and that only his great 
personal popularity prevented some of them from 
withdrawing their support. The Bryan Democrats 
were drawn more toward Roosevelt than toward their 
own party candidate. It was clear that Parker repre- 
sented, on the whole, the weight of conservatism, 
while Boosevelt embodied the spirit of progress, and 
that neither was laical of his party. Parker was 
driven by the progressive Democrats to insist upon 
a regulation of the trusts ; Rooseyelt acquiesced in 
the desire of the ^^ stand-pat " Republicans and re- 
frained from advocating a lowering of the tariff. 

The result of the election was proof of the public 
confidence in Roosevelt. He carried every State out- 
side the South, and Missouri and Maryland besides. 
His popular vote was over 7,500,000, 'while his 
plurality over Parker was more than 2,600,0(/0. In 
the last week of the canvass Parker charged that the 
trusts were supporting Roosevelt, and that the reform 
demands were only a pose. He pointed out that the 
Chairman of the Republican National Committee, 
who had succeeded Hanna, George B. Cortelyou, 
had been Secretary of Commerce and Labor, and 
thus in a position to examine the books of corpora- 
tions. He hinted at a. political blackmail of the 



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BIG BUSINESS 307 

trusts, and many of the papers that supported 
him were outspoken in their charges. An in- 
dignant denial of blackmail appeared over the 
President's signature the Saturday before election. 
Later investigation proved that many of the great 
corporations had, as usual, contributed to the cam- 
paign fund, and that Boosevelt had urged the rail- 
road magnate, Harriman, to contribute toward the 
campaign in New York. 

As soon as the results of the election were known, 
Boosevelt answered a question that was on the lips 
of many. His three and a half years constituted his 
first term. He was now elected for a second term, and 
be characterized as a " wise custom " the limiting of 
a President to two terms. " Under no circumstances 
will I be a candidate for or accept another nominar 
tion," he declared. 

BIBLIOGRAPHICAL NOTE 

The history of the recent trust movement may be followed 
in the writings upon the United States Steel Corporation by 
£. S. Meade and H. L. Wilgus. There is a detailed and gossipy 
Inside History of the Carnegie Steel Company (1903), by J. H. 
Bridge. W. F. Willonghby has made searching analyses of 
Concentration and Integration, which may be found in the 
Yale RevieWf vol. yn,and the Quarterly Journal ofEconomicSf 
Tol. XVI. The prosecution of the Northern Securities Company 
brought out many typical facts of railroad consolidation, and 
is best described in B. H. Meyer, A History of the Northern 
Securities Case (in University of Wisconsin Bulletin, no. 142). 
More general material upon these topics may be found in E. R. 
Johnson, American RaUway TransportcOion (1903, etc.) ; F. A. 
Cleveland and F. W. Powell, Railway Promotion and Capitalize 
aiion in the United States (1909, with an admirable biblio- 
graphy); Poore's Railroad Manual; and the files of the Com' 



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808 THE NEW NATION 

mereial and Financial Chronicle. The Tolaminons Bepoit of the 
Industrial Commission (19 toIs., Washington, 1900-02) is a 
storehouse of facts npon industry ; labor conditions are illustrated 
in the Annnal Reports of the United States Commissioner of 
Labor, who has also special reports upon individual strikesy 
including that at Cripple Creek in 1903. The history of the 
campaign fund in 1904 was partially reyealed in an inyestiga- 
tion in 1912. H. Croly, Marcus A, Hanna, ia inyalnable for 
these yean. 



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CHAPTER XIX 

THE "MUOK-RAKBBS" 

Before Boosevelt was inaugurated for Us second 
term, the national " revival," in which he and Bryan 
and other preachers of civic virtue had played the 
speaking parts, was sweeping over the country. The 
menace of the trusts was seen and exaggerated as 
railways, corporations, and labor availed themselves 
of the means of cooperation. The connection between 
the great financial interests and politics was believed 
to be dangerous to public welfare. All the mechani- 
cal reforms for the recovery of government by the 
people, that had been originated between 1889 and 
1897, were revived once more, and there was added 
to confidence in them a widespread belief in the ex- 
istence of a malevolent, plundering class. 

It was not enough that the trust movement should 
be explained as an unavoidable development from 
modem communication. It was believed to consti- 
tute more than an economic evolution. The public 
was prone to place an ethical responsibility upon an 
individual or groups of individuals, and there came 
a series of revelations or exposures that appeared, in 
part, to fix the blame. All the old uprisings against 
boss-rule were revivified, and capitalistic control was 
placed upon the Index. 

Miss Ida M. Tarbell, an historical student who 



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SIO THE NEW NATION 

had gained an audience through popular and dis- 
criminating lives of Napoleon and Lincoln, published 
a history of the Standard Oil Company in McClure^s 
Magazine during 1903. She showed conclusively 
the connection between transportation and monopoly 
in the oil industry, revealing the mastery of the tools 
of transportation, by rebates, by control of tank cars, 
or by pipe lines, that had enabled John D. Socke- 
f eller to establish his great trust. She showed also 
the unlovely methods of competition, long common 
to all business, but magnified by their use in the 
hands of a monopoly to establish itself. ^^What 
we are witnessing," wrote Washington Gladden a 
little later, ^^is a new apocalypse, an uncovering 
of the iniquity of the land. . . . We have found 
that no society can march hellward faster than a 
democracy under the banner of unbridled individu* 
alism." 

Three years before Miss Tarbell displayed the 
tendency of the trusts, President Hadley^^of Yale, 
had suggested that social ostracism, or social stigma, 
might be made an efficient tool for reform. Other 
writers used the tool. Lincoln Steffens, in a series 
of articles on " The Shame of the Cities," exposed 
the connection between graft and politics. Thomas 
Lawson, with spectacular exaggeration, laid the 
troubles of society at the feet of " Frenzied Finance." 
CoUier*s Weekly undertook to reveal the worthless- 
ness and fraud in the trade in patent medicines. 
Many of the exposers encroached upon the fields of 
fiction in their work, while books of avowed fiction ex- 
ploited the conditions they portrayed. Coniston^ by 



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THE "MUCK-RAKERS" 811 

Winston Churchill, was based upon the control of a 
State by a railroad boss. Upton Sinclair wrote The 
Jungle to expose the meat-packers. 

A new journalism aided and was aided by the zeal 
to expose and the greed of the public for literature 
of exposure. In the later nineties city journalism was 
reorganized under the influence of the " yellow " pa- 
pers, and sensational news was made a profitable 
conmiodity as never before. The range of the daily 
paper was, however, limited by a few hundred miles, 
and its influence could not become national. A new 
periodical literature, resembling the old literary 
monthlies, but using many timely and journalistic 
articles, sprang into life and gained national circula- 
tion and influence. S. S. McClure was one of its pio- 
neers. Everybody's^ the Cosmopolitan^ Munsey^a^ 
the American^ and weeklies Uke Collier* s^ the Out- 
looky and the Independent were among the journals 
that helped to spread the conclusions and advocate 
reforms. Besides these a horde of imitators fattened 
for a time upon exposure* 

Journalism had a large part in directing the 
American revival, and private investigators furnished 
many of the facts. Public suits marked an attempt 
to act upon the facts and remedy them. In Missouri 
Joseph W. Folk conducted a series of prosecutions 
against grafters in St. Louis that elevated him in a 
few months to the head of his parly and the govern- 
orship of his State. The Bureau of Corporations, 
attached to the new Department of Commerce and 
Labor in 1903, made a series of reports the most 
notable of which showed that the charges against the 



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812 THE NEW NATION 

Standard Oil Company for extorting rebates, and 
against the meat-packers for onsanitaiy conditions, 
were founded upon fact. 

The most notable public exposure of indiscretion 
and wrongdoing in high finance occurred in New 
York. Here, during 1905, a quarrel over the manage- 
ment of the Equitable Life Insurance Company led 
to a legislative investigation by a so-called Armstrong 
Committee. One of the attorneys employed by 
the committee, Charles E. Hughes, soon became the 
spirit of the examination. One by one he called in- 
surance officers to the witness stand, and drew from 
their reluctant lips the story of their relation to 
banking, to speculative finance, and to politics. He 
revealed the existence of a group among the bankers 
not unlike a money trust. He proved that for at least 
three national campaigns the insurance companies, 
like other corporations, had given heavy subsidies to 
the campaign funds, sometimes of both but always 
of the Republican party. 

Whenever an investigator rose above the level and 
established his reputation for honesty and compe- 
tence, the aroused public seized upon him for use in 
politics. In September, 1906, the Democrats of New 
York nominated the most successful of the sensa- 
tional journalists, Hearst, for governor. On the same 
day the Republican Convention, in which no delegate 
had been instructed for him, nominated Hughes as 
governor of New York, because public opinion in the 
party would take no other candidate. Hughes was 
elected in 1906 and again in 1908, in spite of the 
hostility of Republican party leaders. His adminis- 



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THE "MUCK-RAKERS'* S13 

trations were prophetio of the new spirit that was 
entering poUtics. 

Many of the problems raised by the investigations 
were old and presented only a need for an honest 
enforcement of the law against lawbreakers. Others 
were simple and prescribed their own methods of 
treatment. The evil of corporation contributions to 
campaign funds was met in 1907 by a law forbidding 
national banks to contribute to any election, or any 
corporations to contribute to a presidential or con- 
gressional election. In 1906 the gift of free railroad 
passes upon interstate railroads was prohibited by 
law. The presidential candidates in 1908 pledged 
themselves to publicity in the matter of contribu- 
tions, while the complaints of poverty-stricken cam- 
paign managers in 1908 and 1912 indicated that the 
laws were generally obeyed. Still other problems 
raised large questions of scientific investigation and 
legislation. 

The reaction from the carelessness revealed by the 
investigation of the meat-packers stimulated a pure- 
food movement that had had its advocates for many 
years. With the concentration of food manufacture 
and the increase in the consumption of ^^ package pro- 
ducts," the consumer had given up the preparation of 
his own food and thrown himself upon the dealer. 
The numerous domestic industries typical of the 
American family in 1880 had been sorted out. The 
sewing had gone to the sweat shop and the factory, 
the baking had gone to the public baker, the laundry 
was going, the killing and preservation of meat and 
the preparation of canned vegetables and fruits were 



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814 THE NEW NATION 

nearly gone. Population followed the industries to 
work in the factories. Country life lost much of its 
variety and interest, while the congested masses in the 
cities were made dependent for their health and 
strength upon private initiative. Kigorous bills for the 
inspection of meats at the slaughter houses, and for the 
proper labeling of manufactured foods and medicines, 
were carried through Congress in 1906 on the strength 
of the popular revulsion against the manufacturers. 
Hereafter the Department of Agriculture stood be- 
tween the people and their food. James Wilson, of 
Iowa, had been Secretary since 1897 and remained 
in the office until 1913. He and his subordinates, 
notably Dr. Harvey Wiley, in charge of the pure- 
food work, administered the law amid the proddings 
of consumers and the protests of manufacturers. With 
much complaint, but with little difficulty because of 
the consolidation of control, business adjusted itself 
to the new requirements and labels in tiie next few 
years. 

The anti-railroad movement reminded the public 
that the Interstate Commerce Law of 1887 was an 
imperfect statute. It had always done less than its 
framers had intended. Judicial interpretation had 
limited its scope. The commission did not have power 
to fix a rate or to compel in the railroads the uni- 
formity of bookkeeping without which no scientific 
rates could be established. After Boosevelt had 
directed his speeches of 1903 and 1904 to the sub- 
ject. Congress responded to the public interest thus 
aroused with a flood of projected railroad bills. One 
of these passed the House of Sepresentatives in 1905, 



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THE "MUCK-RAKERS" 815 

bnt was held up in the Senate while a new investi- 
gation of interstate commerce, the most exhaustive 
since the Cullom investigation of 1885, was under- 
taken. In 1906 the Hepburn Railway Bill was passed. 
In its chief provisions it gave the Interstate Com- 
merce Commission power to fix rates and to pre- 
scribe uniform bookkeeping, and it forbade railways 
to issue free passes or to own the freight they car- 
ried. The long railroad debate was made notable by 
the speeches of a new Senator, Robert M. LaFollette, 
of Wisconsin, who had fought his way to the gover- 
norship on this issue and gone through a prolonged 
fight with the railroads of his own State. He insisted 
that public rate-making could not succeed without a 
preliminary physical valuation of the roads that would 
show the extent of their real capitalization. He talked, 
often, to empty chairs in the Senate, but he prophesied 
that the people had a new interest in their affairs, 
and that many of the seats, vacant because of the 
indifference of their owners, would soon be filled with 
Senators of a new type. In vacations he spoke to 
public audiences on the same subject, reading his 
** roU-call," and telling the people how their repre- 
sentatives voted for or against commercial privilege. 
With its enlarged powers the Interstate Conunerce 
Commission made rapid headway against rebates and 
discrimination. 

The popular revival was well advanced by 1905, 
but was becoming more sensational every month. 
Led on by an expectant public, the magazines manu- 
factured exposures to supply the market, and hysteria 
often took the place of investigation. The real needs 



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816 THE NEW NATION 

of reform were in danger of being lost in a flood of 
denunciation. In the spring of 1906 President Roose- 
velt spoke out to check the indiscriminate abuse. He 
drew his topic from Bunyan's **Man with the Muck- 
Bake," pointed out that blame and exposure had run 
its course, and demanded that enforcement of the 
law be taken up, and that efforts be turned from 
destruction to construction. He had done much him- 
self to ^* arouse the slumbering conscience of the 
nation," and turned now to direct it toward a permsr 
nent advantage. 

The trend of criticism injured the party under 
whose administration corporate abuse had grown up. 
The personal popularity of Roosevelt, and his asso- 
ciates. Root, Taft, Knox, and Hughes, saved the 
party from defeat. In 1906 the congressional cam- 
paign was fought on the basis of holding on to pros- 
perity, enforcing the law against all violators, and 
strengthening the hands of government. Roosevelt 
wrote the substance of the platform, and his party 
gained control of its sixth consecutive Congress since 
1896. The canvass over, Roosevelt departed from 
an old precedent, left the territory of the United 
States, and visited the Isthmus of Panama to inspect 
the work on the canaL 

Six months after the signing of the Panama Treaty 
in 1903 the United States took possession of the 
Canal Zone and began to dig. It had to learn les- 
sons of both management and tropical engineering. 
One by one its chief engineers deserted the enterprise. 
The choice between a sea-level and a lock canal di- 
vided the experts. The legislation by Congress was 



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THE "MUCK-RAKERS'* 817 

inadequate. In the spring of 1906 Roosevelt, with 
the approval of Taf t, who had been recalled from the 
Philippines to be Secretary of War, determined to 
build a lock canal. The President tramped over the 
workings in November, 1906, and sent an illustrated 
message about them to Congress on his return. In 
1907 Major George W. Ooethals was detailed from 
the army to be benevolent despot and engineer of the 
Canal Zone. Inspired and encouraged by repeated 
visits from Taft, the work now made rapid progress 
toward completion. Sir Frederick Treves, the great 
English surgeon, visited the canal in 1908, and found 
there not only gigantic engineering works, but a 
triumph for the preventive medicine of Colonel 
William C. Oorgas, chief of the sanitary of&cers. 

The attention of the world, directed toward the 
United States since 1898, was held by the canal and 
by a continuation of a vigorous and open diplomacy. 
In February, 1904, Russia and Japan, unable to 
agree upon the conduct of the former in Manchuria, 
had gone to war. Hostilities had continued until 
Russian prestige was shattered and Japanese finance 
was wavering. In June, 1905, the United States 
directed identical notes to the belligerents, offering 
a friendly mediation. The invitation was accepted, 
and during the summer of 1905 the envoys of Russia 
and Japan met in Portsmouth, New Hampshire, to 
conclude a treaty of peace. In 1906 the Nobel Com- 
mittee awarded to Roosevelt the annual prize for 
services to peace. 

Relations with all the world were friendly between 
1905 and 1909. Great Britain contributed to the 



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818 THE NEW NATION 

cordiality by sending to the United States as her 
ambassador the best-fitted of her subjects, James 
Bryce. Under his tactful management the next five 
years were a period of unprecedented friendship. The 
South American republics, always sensitive about the 
headship of the United States, were brought to kind- 
lier feelings. There had been two congresses of all 
the Americas, one in 1889, at the instigation of 
Blaine, the next in Mexico in 1901. In 1906 the 
American republics convened at Rio de Janeiro in 
July. Secretary of State Elihu Boot made a plea 
for friendship before this congress. From Bio he went 
to other capitals of South America, achieving notable 
triumphs in his public speeches. 

The Pan-American Conference at Bio was an 
American preliminary to a larger meeting in which 
the United States played an important part in 1907. 
During 1904 Boosevelt had agreed to start a move- 
ment for a second conference at The Hague. He took 
up the negotiation during the Busso-Japanese War, 
deferred it at the instance of the Czar, and then 
stood aside to let the latter issue the formal invita- 
tion. The American delegation at the Second Hague 
Conference was led by Joseph H. Choate, leader of 
the American Bar and former ambassador to Great 
Britain. It forced the discussion throughout the ses- 
sion, tried in vain to produce an agreement to abol- 
ish the right of capture of enemy property on the 
high seas in time of war, and helped to strengthen 
the permanent court of arbitration. In January, 
1906, the United States had sat in conference at 
Algeciras, over the affairs of Morocco. It had medi- 



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THE "MUCK-RAKERS" 819 

ated in the Oriental war. It had strengthened its 
position at home. It was no longer true that the 
United States was entirely disinterested in the affairs 
of Europe, for it had become a world power. 

A visible emblem of power was afforded to the 
world in 1907. Since the Treaty of Portsmouth 
there had been friction with Japan over the treat- 
ment of Japanese subjects on the Pacific Coast, and 
alarmists had drawn pictures of a possible war. Late 
in 1907 the President announced a practice voyage 
for the whole effective navy that would carry it around 
South America and into the Pacific. In December he 
reviewed the fleet, and saw it off from Hampton Roads. 
From the Pacific it was ordered round the world, 
visited Japan and China, and was received with keen 
interest everywhere. It came home early in 1909, 
having made a record for holding together without 
breakdown or accident. 

While the fleet was going round the world and 
business was adjusting itself to the new constructive 
laws, an old problem was formally ended. The tribal 
sovereignty, which had made the Indians a problem, 
was terminated. The Dawes Act of 1887 had substi- 
tuted severalty for tribal landholdings among the 
Indians. Out of the first cessions which followed the 
act Oklahoma Territory had been made in 1890. 
This had developed more rapidly than any previous 
Territory because of the railroads that crossed it in 
every direction. By 1900 it demanded statehood. 
In 1906 it was enabled, and during 1907 it was ad- 
mitted, with the longest and most radical of state 
constitutions. Fear of the activities of corporate 



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8«0 THE NEW NATION 

wealth and distrast of the agents of government 
were written into nearly every article. 

In the spring of 1908 nearly all of the forty-six 
governors met with President Roosevelt in the White 
House and registered another problem upon which 
agitation and revelation had led to public reflection. 
The coal strikes of 1900 and 1902 had drawn atten- 
tion to the possible relation of government to the coal 
supply of the people. The beginnings of reclamation 
in 1902 had revealed the fact that public reclama- 
tion was impeded by large private and corporate 
water rights. The natural resources of the country 
were seen to be following the course of all business 
and settling into the control of great corporations. 
The waste of coal and timber and water and land itself 
was unreasonable. The denudation of the hills led to 
terrible floods along the rivers. The future was being 
darkened by the organized selfishness of the present. 
A movement for conservation grew out of the confer- 
ence of governors, but Congress for the present 
would not encourage it. 

In popular education, in initiation of new admin- 
istrative policies, and in the passage of constructive 
laws e£Ports were being made to adjust government 
to the needs of modem industry and to safeguard 
society. The business interests affected by the changes 
obstructed the process when they could, and were 
intensified in their opposition by the series of prose- 
cutions brought by Attorney-General Knox, and his 
successor Charles J. Bonaparte, under the Sherman 
Law. At no time in the earlier history of this law 
had there been a strong disposition to test its merit, 



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THE "MUCK-RAKERS*' 821 

and no one of the notorious trusts had been attacked 
before the Northern Securities case. In later years 
it was turned against the Standard Oil Company, 
the beef-packers, the Tobacco Trust, the Sugar Trust, 
and the United States Steel Corporation, while rail- 
ways and smaller corporations, in great number, were 
prosecuted. The enforcement of the law aroused 
blind opposition among many of the victims, and 
stimulated queries as to whether or not any attempt 
to limit the size of business was sound public policy. 
The debate upon regulation, as against prohibition 
of trusts and monopolies, ran on with no sign of 
victory for either side of the argument. Personal 
hostility against the Administration for applying 
the law gave color to the last two years of Roosevelt's 
Administration. 

By 1907 there had been ten years of the prosper- 
ity that had begun with the election of McKinley. 
Finance had developed with industry and trade. The 
needs of corporations dealing in millions and hun- 
dreds of millions of capital had induced the consoli- 
dation of banks and the concentration of financial 
powerinthehandsof a small group of men. The hold- 
ing companies were great aids in the furtherance of 
this concentration. J. Pierpont Morgan and John 
D. Rockefeller were best known as representative 
of the inner circle. Their speculations and invest- 
ments were embarrassed by the weakening of public 
confidence. It was certain there would come a time 
when the whole surplus capital of the United States 
would be invested in permanent improvements. Such 
periods had followed eras of boom in 1887, 1857, and 



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8«2 THE NEW NATION 

1878. It was too probable that some accident occuiv 
ring in the period of liquidation would create a panic. 
Suspicion had been directed against the controlling 
agents of business by the revelations of 1902-07. It 
was exaggerated by sensational joumklism. It reached 
a climax in the fall of 1907 when a group of banks, 
reputed strong, failed through dishonesty and specu- 
lative management. The failure of the Mercantile 
National Bank and the suspension of the Knicker- 
bocker Trust Company in New York brought the 
crisis on October 22, 1907. The loss to the public 
was lessened by resolute and sympathetic coopera- 
tion among the clearing-houses, Morgan, Bockef eller, 
and the United States Treasury, but a period of 
enforced economy was begun for all. 

The managers of big business attributed the panic 
to " Theodore the Meddler." They claimed that busi- 
ness was sound and honest, and the upheaval was 
caused by the agitation of demagogues. The Presi- 
dent, they asserted, had destroyed confidence by his 
attack on the commercial class. Federal prosecutions, 
new laws, and the enforcement of inquisitorial pure- 
food reg^ations had made it impossible for business 
to live. "Let us alone," they cried. 

They convinced only themselves, a small minority 
of the people of the United States. Since 1902 the 
people as a body, regardless of the great parties, had 
opened their eyes to the trend of business and had 
decided that public authority must be summoned to 
the defense of democracy. The independent vote 
broke away from each party in increasingly numerous 
cases. The old American view that democracy meant 



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THE "MUCK-RAKERS'* 828 

unrestrained individualism had given way to the 
newer view that democratic opportunity was depen- 
dent upon the restriction of monopoly. The osten- 
sible leaders, from the President down, were only 
the mouths that spoke the new language. Without 
them the same condition would have existed in large 
degree. The attack of the financial interests and 
Wall Street upon the President only convinced the 
people that the Roosevelt policies were, on the whole, 
their policies, and that individual interest and party 
machinery must give way to their attainment. 

BIBLIOGRAPHICAL NOTE 

The periodicals and special articles alladed to in this chap* 
ter constitate the best sources as yet available for the period. 
There were numerous investigations by committees of Congress 
that furnished facts in their reports. Certain of the depart- 
ments of government, notably the Bureau of Corporations and 
the Department of Agriculture, were active in the publication 
of facts. Thoughtful surveys of society in the United States 
may be found in £. A. Ross, Changing America (1912); H. 
Croly, The Promise of American Life (1909); A. B. Hart, 
National Ideals Historically Traced (in The American Nation, 
vol. 26, 1907). The autobiography of R. M. LaFollette is of 
considerable value. A great number of books upon America 
by foreign visitors bring out special viewpoints. Among these 
are F. Klein, In the Land of the Strenuous Life (1905); A, 
Bennett, Your United States (1912) ; W. Archer, America To- 
Day (1899); Anon., Asa Chinaman Saw Us (1904); and James 
Bryce has revised and brought down to date his American Com" 
montoeakh* 



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CHAPTER XX 

JS^EW NATIONALISM 

The process of adjusting national administration 
and laws, to meet the needs of life and business that 
knew no state lines, had been begun during the 
Boosevelt period. For its completion it was neces- 
sary that a successor be found, convinced of the 
Boosevelt policies and able to carry them out. Three 
Republicans of this type were often mentioned for 
the Presidency in 1908. Elihu Root had been the 
legal mainstay of three administrations, and had re- 
ceived the public commendation of Roosevelt often 
and without restraint. His availability for the elective 
office was, however, weakened by his prominence as 
a corporation lawyer; which would be urged against 
him in a campaign. William H. Taft, Secretary of 
War, had a wider popularity than Root; had, as fed- 
eral judge, long been identified with the enforcement 
of law, and had been used repeatedly as the spokes- 
man of the President. He knew the colonies as no 
other American knew them, and was in touch with 
every detail of the Panama Canal. Neither he nor 
Root had won a leadership in competitive politics as 
had the third candidate, Charles E. Hughes, who, as 
Governor of New York, had shown his capacity to 
fight professional politicians on their own ground. 

In 1907, President Roosevelt announced his pref- 
erence for Judge Taft, and fought off, as he had 



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NEW NATIONALISM 325 

often done, suggestions that he accept another 
term himself. He controlled the Republican conven- 
tion at Chicago, where his candidate was nominated 
on the first ballot. A Republican Representative 
from New York, James S. Sherman, was nominated 
for the Vice-Presidency, and the party leaders were 
driven to a platform of enthusiastic indorsement of 
the Roosevelt policies. 

The Democratic party, meeting at Denver in 1908, 
was again under the control of the radical element, 
and nominated William J. Bryan for the third time. 
The career of Roosevelt had modified the emphasis 
of the Bryan reforms. " Any Republican who, after 
following Roosevelt, should object to Bryan as a 
radical, would simply be laughed at consumedly," 
said one of the weeklies. In the ensuing campaign 
both candidates professed ends that were nearly 
identical, and their advocates were forced to explain 
whether the Roosevelt policies would have a better 
chance under Bryan or Taft. There was no clear issue, 
and in each party there was a powerf id minority that 
wanted neither of the candidates. The election of 
Taft had been discounted throughout the campaign, 
but it was accompanied by a demonstration of inde- 
pendent voting that revealed the weakness of party 
ties. Four Democratic governors were elected in 
States that were carried by the Republican national 
ticket. 

The Administration of President Taft was greeted 
with cordial good will by the progressive elements in 
both parties. His courage and sincerity had never 
been questioned. Roosevelt was unlimited in his 



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826 THE NEW NATION 

praise. His judicial training made impossible for 
him types of political activity that had made ene- 
mies for his predecessor among many conservatives, 
yet his devotion to policies of administrative reform 
was beyond dispute. He immediately fulfilled one 
pledge of the Bepublican platform by summoning 
Congress to meet on March 15, 1909, to revise the 
tariff, and on this subject he had for several years 
avowed a desire that revision should be downward, 
to remove all trace of special tariff privilege. 

The movement for tariff reform had begun in the 
Middle West about 1902, and had spread with the 
feeling against the trusts. Boosevelt had indicated a 
sympathy with it in 1902 and 1903, and had fought 
Congress for tariff modification in the interest of 
Cuban reciprocity. But most of the party leaders 
had opposed tampering with the protective system. 
Speaker Cannon was an avowed protectionist and de- 
fended the attitude of the stand-pat tariff advocates. 
After 1904 the President had ceased to discuss the 
tariff, confining himself to other schemes for reform. 
He left the problem of revision to his successor. 

The tariff of 1909 bore the names of Sereno E. 
Payne, of New York, chairman of the House Com- 
mittee of Ways and Means, and Nelson W. Aldrich, 
chairman of the Senate Committee on Finance. Aa 
it passed the House it embodied numerous reduc- 
tions from the Dingley rates. In the Senate it 
was reframed and became an instrument of even 
greater protection than the existing law. It was de- 
bated in a stroDger glare of public interest than 
any other tariff, and its details were explained and 



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NEW NATIONALISM 827 

foaght by a group of Bepablicans who refused to 
accept the control of the inner circle of the party, 
and who were determined that the revision should 
be downward and sincere. They did less to affect the 
bill, however, than President Taft, who forced the 
conference committee to accept a few reductions in 
the fates, notably on hides and lumber, and to include 
a provision for levying an income tax on corpora- 
tions. A constitutional amendment, authorizing a 
general income tax, was a part of the agreement. The 
bill became a law in August, 1909. '^ The bill, in its 
final form," said the Outlook^ which inclined toward 
free trade, ^^is by far the most enlightened protec^ 
tionist measure ever enacted in the history of the 
country," " I think that the present tariff," wrote 
Boosevelt, who had returned to private life, "is bet- 
ter than the last, and considerably better than the 
one before the last." 

Whatever its relation to earlier tariffs the Payne- 
Aldrich Act was distasteful to the country, which 
had since 1897 become critical of the methods of 
tariff legislation. Seven Republican Senators and 
twenty Bepresentatives voted against it on its final 
passage. These represented the Middle West and 
the new generation, and returned home to find their 
constituents generally with them in denouncing the 
measure as an instrument of privilege. Some of them 
had broken with President Taft during the debate, 
and the breach was deepened when the latter spoke 
in the West, at Winona, Minnesota, and defended 
the act as a compliance with the party pledge. It 
became apparent that the new President was unable. 



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328 THE NEW NATION 

to procure party legislation and to maintain at the 
same time an appearance of harmony in the party. 
Roosevelt had dissatisfied but had overriden the con- 
servative wing ; Taf t failed to satisfy the most pro- 
gressive wing and failed to silence them. 

In the autumn of 1909 began a series of admin- 
istrative misunderstandings that greatly embarrassed 
the Taft Administration. A prospective minister to 
China was dismissed abruptly before he left the 
United States, on accoimt of a supposed indiscre- 
tion. In the Department of Agriculture there was 
dissension between the Secretary, James Wilson, and 
the chemist engaged in the enforcement of the Pure 
Food Law, Harvey W. Wiley. The chief of the for- 
estry service, GifiFord Pinchot, quarreled openly with 
the Secretary of the Interior, Richard A. Ballinger, 
and raised the question of the future of the policy 
of conservation. 

The work of the forestry and reclamation services 
was at the center of the scheme for conservation of 
natural resources that had grown out of Roosevelt's 
conference with the governors in 1908. A subordi- 
nate of the forestry service attacked the Secretary of 
the Interior in 1909, charging favoritism and lack 
of interest in conservation. He was dismissed in 
September, upon order of President Taft, whereupon 
Collier's Weekly undertook an attack upon the 
President as an enemy of conservation, receiving the 
moral support of many of the progressives who dis- 
liked the tariff act. In January, 1910, the growing 
controversy led the President to dismiss Pinchot 
from the service, for insubordination, and Congress 



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NEW NATIONALISM 329 

to erect a joint committee to investigate the Pinchot- 
Ballinger dispute. 

The Ballinger committee ultimately vindicated 
the Secretary of the Interior, but the testimony 
taken brought out a fundamental difference between 
the theory of Taft, that the President could act only 
in accordance with the law, and that of Koosevelt, 
that he could do whatever was not forbidden by law. 
Although Taft stood by his subordinate, claiming 
that he and BaUinger were both active in conserva- 
tion, a large section of the public believed that the 
aggressive movement for reform had lost momentum. 
What Boosevelt thought of it was impossible to 
learn, since he had gone to Africa in 1909, and re- 
mained outside the sphere of American politics un- 
til the summer of 1910. 

^ The progressive Bepublicans revolted in 1909 and 
1910 against the domination of the ^' stand-pat" 
group, and received the name "Insurgents." Sen- 
ators LaFollette and Cummins, both of whom de- 
sired to be President, were the avowed leaders. In 
the House of Representatives, in March, 1910, the 
Insurgents cooperated with the Democratic minority, 
defeated a ruling of Speaker Cannon, and modified 
the House rules in order to curtail the autocracy of 
the presiding officer. They asked the country to be- 
lieve that Taft had ceased to be progressive and had 
become the ally of the stand-pat interests. The split 
in the Eepublican party enabled the Democrats to 
carry the country in 1910, and to obtain a large 
majority in the House of Kepresentatives. Champ 
Clark, of Missouri, and Oscar Underwood, of Ala- 



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8S0 THE NEW NATION 

bama, both aspirants for the Democratic presiden- 
tial nomination, became, respectively. Speaker and 
chairman of the Committee on Ways and Means in the 
new House. No one man controlled or led either party 
by his personality as Theodore Roosevelt had done; 
the rivalry of lesser leaders destroyed the harmony 
of both parties, and neither party even approached 
unanimity in regard to the great policies of the fu- 
ture. In January, 1911, the Insurgent Republi- 
cans organized a Progressive Republican League 
for the purpose of capturing the nomination in 
1912 for one of their number, presumably Senator 
LaFollette. 

The Taft policies differed from those of his pre- 
decessor chiefly in the method of their advocacy. 
Like Roosevelt, Taft had trouble in getting them 
enacted, and unlike Roosevelt, he failed to magnet- 
ize the people and carry them with him. He pro- 
cured, however, funds for the creation of a board of 
tariff experts to aid in future revisions of schedules, 
and for a commerce court, to handle appeals in in-* 
terstate commerce cases. The income tax amendment 
secured his support. He used his influence to pre- 
vent the seating of William Lorimer, a Senator 
elected from Illinois under conditions of grave scan- 
dal. The Interstate Commerce Law was revised and 
strengthened in 1910. An enabling act for Arizona 
and New Mexico was passed in 1910, under which 
both of these Territories became States in 1912. He 
continued the series of anti-trust suits begun under 
Roosevelt, and procured decisions ordering the dis- 
solution of the Southern Pacific merger, the Stand- 



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NEW NATIONALISM 831 

ard Oil Company, and the Tobacco Trust, and the 
penalizing of many others. 

In the field of administration President Taft 
showed an instinct for orderly and economical goy- 
emment. He urged upon Congress the adoption of 
a budget system for expenditures, and employed a 
body of experts to aid in reducing the cost and inef- 
ficiency of the executive departments. He extended 
the civil service until in 1912 only 56,000 of the 
834,000 federal employees were still outside the 
classified service. 

The foreign negotiations of the Taft Administra- 
tion were most distinguished in respect to Latin- 
American trade, to arbitration, to neutrality, and to 
reciprocity. With the Latin-Americas he continued 
the policy of friendly support, through Philander 
C. Knox, his Secretary of State. The critics of this 
policy stigmatized it as ^^ dollar diplomacy," but 
Taft and Knox defended it as leading these repub- 
lics through sound finance to stable government. A 
protracted revolution in Mexico led to the expulsion 
of President Porfirio Diaz in 1911, and was followed 
by counter-revolutions in 1912. Throughout the dis- 
turbance Taft maintained a rigid neutrality, and in- 
duced Congress to permit him to prohibit the export 
of arms for sale to the belligerents. This constituted 
an advance upon the customary practice of neutrals, 
who are permitted under international law to seU 
munitions of war to either belligerent. 

In 1908, Roosevelt had signed general arbitra- 
tion treaties with Great Britain and other countries, 
containing the usual reservations of cases involving 



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SS2 THE NEW NATION 

honor or national existence. In 1911, Taft signed 
yet broader treaties with Great Britain and France, 
providing for the arbitration of all justiciable dis- 
putes, and for a commission to determine whether 
disputed cases were justiciable or not. The Senate 
declined to ratify these agreements. 

Canadian reciprocity was a part of Taft's tariff 
program. In 1911, he called Congress in special 
session to approve an agreement for a modification 
of the Payne- Aldrich rates with Canada. The Demo- 
cratic majority in the House of Representatives sup- 
ported this measure, as did enough of the regular 
Republicans to insure its passage. But the Insur- 
gents opposed it as likely to injure the interests of 
the farmer. In September, 1911, Canada rejected 
the whole measure after a general election in which 
a fear of annexation by the United States was an 
important motive. 

The Taft policies failed to thrill the party or the 
people. They were less spectacidar than the evils 
which the muck-rakers had portrayed. They were 
constructive and detailed, and aroused as opponents 
many who had joined in the general clamor for re- 
form. They interested the party leaders little, for 
these were more concerned with their own personal 
fates, and were not overshadowed by the President 
as they had been for eight preceding years. They 
were all conceived in the spirit of a lawyer and judge, 
and were passed in an alliance with the wing of the 
Republican party that was most impervious to the 
new reforms, and were hence open to the attack that 
they were in spirit and intent reactionary. 



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NEW NATIONALISM 383 

In June, 1910, with the Bepublican schism well 
advanced, Theodore Koosevelt returned to the United 
States. A few weeks later he made a speaking trip 
in the West, and at Osawatomie, Kansas, he laid 
down a platform of reform that he called *^New 
Nationalism/' This was in substance an evolution 
from the history of forty years. It assumed the fact 
of the development of business and society along 
national lines, and demanded that the Government 
meet the new problems. It believed that constitu- 
tional power already existed for most of the needed 
functions of government, and demanded that where 
the power was lacking it should be obtained by con- 
stitutional amendment. The platform was received 
with equally violent commendation and attack. 
Many Progressives hailed it as an exposition of 
their faith. Conservatives were prone to call it so- 
cialistic or revolutionary. It restored Koosevelt to a 
position of consequence in public affairs, and empha- 
sized the fact that Taft had developed no power of 
popular leadership comparable to that of his friend 
and predecessor. It gave the Progressives hope that 
Roosevelt, debarred from the Presidency by his 
pledge and by the unwritten third-term tradition, 
would aid them in forcing the Bepublican party to 
nominate a Progressive in 1912. 

The concrete principles of the Progressive group 
embraced a series of policies looking toward the 
destruction of ring-controlled politics. They de- 
manded and generally concurred in the initiative 
and referendum, the direct primary, and the direct 
election of delegates to national conventions, and 



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S84 THE NEW NATION 

the direct election of United States Senators. Many 
of them believed in a new doctrine, the recall, which 
was to be applied to administrative officials, to 
judges, and even to judicial decisions. Woman suf- 
frage was commonly acceptable to them. 

The cause of woman sufiErage had made great 
progress since Idaho became, in 1896, the fourth 
suffrage State. A modified form of suffrage in local 
or school elections had been allowed in many States. 
A new period of agitation for unrestricted woman 
suffrage had begun in England about 1906, and had 
been given advertisement by the deliberate viola- 
tions of law and order by the militant suffragettes. 
The agitation, though not the excess, had spread to 
the United States. In 1910, Washington, and in 
1911, California, had become woman suffrage States. 
By 1914, the total was raised to twelve by the addi- 
tion of Arizona, Kansas, Oregon, Illinois,^ Nevada, 
and Montana. 

In the winter of 1911-12, the prospect of Repub- 
lican success in the next national campaign was 
slight. The Democrats had gained the House in 
1910, and they, with the aid of Progressive Repub- 
lican votes, had passed and sent up to the President 
several tariff bills, reducing the rates, schedule by 
schedule. Every one of these had been vetoed, each 
veto tending to convince the Progressives that Taft 
was conservative, if not stand-pat in his sentiments. 
The Progressive Republicans were pledged to work 
against the renomination of Taft, and were unlikely 

^ In Illinois the right was somewhat restricted, yet included 
the voting for presidential electors and for local officials. 



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NEW NATIONALISM S35 

to Bnpport him Yigoronsly, if renominated. Many 
regular Bepublicans believed he could not be re- 
elected. The section of the party that desired a Pro- 
gressive President became larger than the group that 
believed in LaFollette, and demands that Boosevelt 
return were heard from many sources. 

In February, 1912, an appeal signed by seven 
Republican governors, all of whom dwelt in States 
now likely to go Democratic, urged Roosevelt to 
withdraw his pledge and become a candidate for the 
nomination. The demand was concurred in by ad- 
mirers who believed that only he could bring about 
the new nationalism, by Progressives who distrusted 
LaFoUette's capacity to win, and by Republicans 
who wanted to win at any price and saw only defeat 
through Taft. On February 24, Roosevelt an- 
nounced his willingness to accept the nomination, 
explained that his previous refusal to accept another 
term had meant another consecutive term, and en- 
tered upon a canvass for delegates to the Republi- 
can National Convention. 

The campaign before the primaries was made dif- 
ficult because in most States the Republican ma- 
chinery was in the hands of politicians who disliked 
Roosevelt, whether they cared for Taft or not. It 
began too late for the voters to overturn the state 
and national committees, or to register through the 
existing party machinery their new desire. It brought 
out the defects in methods of nomination which di- 
rect primaries were expected to remedy, and in some 
States public opinion was strong enough to compel 
a hasty passage of primary laws to permit the over- 



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SS6 THE NEW NATION 

tarn of the convention system* The LaFoUette can- 
didacy was deprived of most of its supporters, through 
the superior popularity of Boosevelt. 

When the convention met at Chicago on June 
18, 1912, there were some 411 Boosevelt delegates 
among the 1078, and more than 250 more who, 
though instructed for Taft, were contested by Boose- 
velt delegations. When the national committee over- 
ruled the claims of these, Boosevelt denounced their 
action as ^ naked theft" He had definitely allied 
himself with the wing of the party that opposed Taft. 
When the convention, presided over by Elihu Boot, 
and supported by nearly all the men whom Boosevelt 
had brought into public prominence, finally renomi- 
nated Taft and Sherman, Boosevelt asserted that no 
honest man could vote for a ticket based upon dis- 
honor. The Boosevelt Bepublicans did not bolt the 
convention, but when it adjourned they held a mass 
convention of their own, were addressed by their 
candidate, and went home to organize a new Pro- 
gressive party. 

The Democratic counsels were affected by the 
break-up of the Bepublican party and the success 
of its conservative wing at Chicago. They met at 
Baltimore the next week, with Bryan present and 
active, but not himself a candidate. They had to 
choose among Clark, the Speaker, Underwood, the 
chairman of the Committee on Ways and Means, 
and Governors Harmon, of Ohio, Marshall, of In- 
diana, and Woodrow Wilson, of New Jersey. 

The last of these had risen into national politics 
since 1910. He had long been known as a brilliant 



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NEW NATIONALISM 337 

essayist and historian. He was of Virginian birth, 
and had left the presidency of Princeton University 
to become Democratic candidate for Governor of 
New Jersey in 1910. He had shown as governor 
great capacity to lead his party in the direction of 
the progressive reforms. He differed in these less 
from Roosevelt and LaFollette than he or they did 
from the reactionaries in their own parties. ^^ The 
President is at liberty, both in law and conscience,'^ 
he had written long ago, *' to be as big a man as he 
can. His capacity will set the limit. ... He has no 
means of compelling Congress except through pub- 
lic opinion." Unembarrassed by previous attachment 
to any faction of the Democratic party, with a clear 
record against special privilege and corporation in- 
fluence in politics, and supported obstinately by 
Bryan and the young men who had urged his candi- 
dacy, Woodrow Wilson was nominated on the forty- 
sixth ballot, with Governor Thomas Marshall for 
Vice-President. The conservative nomination by the 
Republicans had thrown the Democrats into the 
hands of their radical wing. 

The Progressives held a convention in Chicago on 
August 5, and nominated Theodore Roosevelt and 
Governor Hiram Johnson, of California. Their plat- 
form included every important reform seriously 
urged, and was built around the idea of social jus- 
tice and human rights. They denied that either of 
the old parties was fitted to cany on the work of 
progress. In the campaign their candidates and 
speakers revealed the vigor and the bitterness of the 
former Insurgents. 



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SS8 THE NEW NATION 

The schism threw the election into the hands of 
the Democrats, who retained the House, gained the 
Senate, and elected Wilson, though the latter re- 
ceived fewer votes than Bryan had received in each 
of his three attempts. The struggle was one of per- 
sonalities, since few openly attacked the avowed aim 
of progressive legislation. The popularity of Roose- 
velt detached many Democratic votes from Wilson, 
but his unpopularity among Republicans who feared 
him and Progressive Republicans who resented his 
return to politics, drove to Wilson votes that would 
otherwise have gone to Taf t. Taf t received only eight 
electoral votes in November, and ran far behind both 
his rivals in the popular count. More than four mil- 
lion votes were polled by the new third party in an 
independent movement that was without precedent. 
The Socialist vote for Debs rose from 420,000 in 
1908 to 896,000 in 1912. 

The last year of the administration of President 
Taf t was overshadowed by the party war, and re- 
duced in effectiveness by the Democratic control of 
the House. The prosecutions of the trusts were con- 
tinued, a parcel post was established as a postal 
savings bank had been, the income tax amendment 
became part of the Constitution, and an amendment 
for the direct election of Senators made progress. 

When Woodrow Wilson succeeded to the Presi- 
dency he formed a cabinet headed by William J. 
Brjran as Secretary of State, and including only 
Democrats of progressive antecedents. He called 
Congress in April, 1913, to revise the tariff once 
more, and overturned a precedent of a century by 



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NEW NATIONALISM S89 

delivering to it his message in person. With almost 
no breathing space for eighteen months, he kept 
Congress at its task of fulfilling his party's pledges 
as he interpreted them. 

Tariff, currency, and trust control were the main 
topics upon which the Democrats had avowed posi- 
tive convictions, and upon which the great mass of 
progressive citizens, regardless of party affiliation, 
demanded legislation. One by one these were taken 
up, the President revealing powers of coercive lead- 
ership hitherto unseen in his office. Only the fact 
that non-partisan opinion was generally with him 
made possible the mass of constructive legislation 
that was placed upon the books. The tariff, which 
became a law on October 3, 1913, was a revision 
whose downward tendency was beyond dispute. The 
Federal ^Reserve Act, revising the banking laws in 
the interest of flexibility and decentralization, was 
signed on December 23 of the same year. In Janu- 
ary, 1914, President Wilson laid before Congress 
his plan of trust control, advocating a commission 
with powers over trade coordinate with those of the 
Interstate Conmierce Commission, and an elabora- 
tion of the anti-trust laws to deal with unfair prac- 
tices and interlocking directorates. The Federal 
Trade Commission and Clayton Anti-Trust bills ful- 
filled these recommendations in the autumn of 1914. 
The Panama Canal Act of 1912 had meanwhile 
been revised so as to eliminate a preference in rates 
to American vessels which the President believed to 
be in violation of the guaranty of equal treatment 
pledged in the Hay-Pauncefote Treaty. With a more 



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840 THE NEW NATION 

portentous list of constructive laws than had been 
passed by any Congress since 1890, the Democratic 
majority allowed an adjournment on October 24, 
1914, and its members went home to sound their 
constituents upon the state of tl\e Union. 

The passage of economic laws had called for tact 
and force upon the part of the President, whose 
party, like the Bepublican party, was without a clear 
vision of its policy and included many reactionaries. 
Added embarrassments were found in the continu- 
ance of civil strife in Mexico. Here, shortly before 
the inauguration of President Wilson, there had 
been another revolution, followed by the elevation 
by the army of General Yictoriano Huerta to the 
Presidency. The followers of the deposed Madero 
went into revolt at once, and the new Government 
was refused recognition by the United States on the 
ground that it was not a Government defacto^ and 
that its title was smirched with blood. Patiently and 
stubbornly the United States held to its refusal to 
recognize the results of conspiracy in Mexico. In 
April, 1914, Vera Cruz was occupied by American 
forces in retaliation for acts of insult on the part of 
the Huerta regime, and in July the steady pressure 
of " watchful waiting " brought about the resigna- 
tion of the dictator. The Constitutionalists, succeed- 
ing him, quarreled shortly among themselves, but 
the danger from Mexico appeared to be lessening as 
the year advanced. 

From Europe came other embarrassments in Au- 
gust. Here, the policy of national armament which 
had been adopted in the middle of the nineteenth 



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NEW NATIONALISM 341 

century, reached its logical outcome in a great war 
which was precipitated by Austria in an attack upon 
Servia. Russia immediately came to the aid of her 
Slavonic kinsmen, and upon her Germany declared 
war on August 1. In a few more days Great Britain 
and France had joined Russia against the German- 
Austrian alliance, and most of Europe was at war. 
To bring home the thousands of American tourists 
whom the war had reduced to suffering was the first 
work of the administration. The American ministers 
in Europe became the custodians of the affairs of 
the belligerents in every enemy country, and with 
the aid of all the belligerent nations Americans were 
carried home. After this came the problems of neu- 
trality and American business. Suffering, due to the 
stoppage of the export trade, particularly that of 
cotton, brought wide depression throughout the 
United States. A new law for the transfer of for- 
eign-built vessels to American registry, and another 
for federal insurance against war risks, were hur- 
riedly passed, and the question of a public-owned 
line of merchant ships was discussed. All these 
problems were distracting the attention of the United 
States when Congress brought to an end its pro- 
longed labors, and adjourned. 

The congressional election of 1914 was profoundly 
affected by the European war. Early in the year it 
appeared that conservative opposition to the Demo- 
cratic program was growing, and that the Democratic 
majority was likely to be cut down. The Progressive 
party appeared to be weakening, and the control of 
the Republican parly was settling back among those 



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84« THE NEW NATION 

Republicans against whom the Insurgents had made 
their protest. But President Wilson's precise neu- 
trality won the confidence of all parties, and al- 
though conservatives like Cannon, of Illinois, and 
Penrose, of Pennsylvania, won over Democrats and 
Progressives alike in a few cases, he retained for the 
Sixty-fourth Congress a working majority in the 
House and an enlarged majority in the Senate. His 
election in 1912 had been, in part, due to the dis- 
persion of Kepublican strength caused by the Pro- 
gressive schism ; in 1914, the influence of the Pro- 
gressives was negligible and the Democrats retained 
their power in the face of the whole Bepublican at- 
tack. 

BIBLIOGRAPHICAL NOTE 

Between 1909 and 1914, the Outlook^ to which Theodore 
RooseTelt had heen an occasional contributor, and which had 
been a strong supporter of Bepublican policies since 1898, was 
the regular organ through which Mr. RooseTelt addressed the 
public, OTcr his signature as Contributing Editor. In a similar 
way William J. Bryan reached his followers through the Com" 
moner (1900-), and Robert M. LaFoUette through his LaFoL- 
letters Weekly (1909-). ColHer's Weekly became a center of the 
adTcrse criticism of President Taft. All of these, as well as 
the more general periodicals, are indispensable sources for the 
period, but are so highly partisan as to need constant correc- 
tion for prejudice. The election of 1908 is treated in Stan- 
wood's History of the Presidency from 1897 to 1909, while that 
of 1912 is excellently described in the New International Year 
Book for 1912. The theories of the new nationalism are in 
T. Roosevelty The New Nationalism (1910). 



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INDEX 



Adams, Charles Francis, 55, 56. 

Agricultural colleges, beginning 
of. 17. 

Agriculture, changes in, 14, 15; 
in the South after the War, 
89, 40; Department of, cre- 
ated, 142, 157; main reliance 
of Western pioneers, 149, 151; 
discontent in North and West, 
178, 179, 184; depression of, in 
South, 195; diversified by de- 
cline of cotton values, 204, 205. 

Aguinaldo, Emilio, 267, 278. 

Alabama Claims, the, 55, 56. 

Alaska, gold mines in, 241; set- 
tlement of boundary, 284, 285. 

Aldrich, Nelson W., 118, 826. 

Algeciras, United States in con- 
ference at, 318. 

Alger, Russell A., 253, 274. 

Allison, William B., 89, 255. 

Altgeld, Gov. John P., 222, 279. 

Alverstone, Lord Chief Justice, 
285, 286. 

Amendment, the Thirteenth, 
S3, 42, 48. 

Amendment, the Fourteenth, 
42, 43, 48, 196, 197. 

Amendment, the Fifteenth, 46, 
47, 48, 196, 198. 

American diplomacy, 286. 

American Federation of Labor, 
121, 183, 208. 

American Railroad Union, 222. 

Ames, Adelbert, 47. 

Angell, James B., 60. 

Anti-Contract Labor Law, 185. 

Anti-imperialism, 278, 279. 

Anti-monopolists, 168, 169. 

Anti-trust literature, 166. 

Arbitration, 255, 256; treaties 
refused by Senate, 331, 332. i 

Arizona, a Territory, 21, 152, 
154; becomes a State, 830. 



Army of the United States, at 
outbreak of Spanish War, 266; 
in poor condition during the 
war, 269-72, 274; kter ser- 
vice in Cuba, 282. 

Arrears of Pension Act, 137. 

Arthur, Chester A., removed 
from office by Hayes, 87, 98, 
103; Vice-President with Gar- 
field, 99; opposes Garfield, 
103; as President, reorganizes 
his Cabinet, 106, 109; his first 
message, 109, 110; recom- 
mends civil service reform, 
lis, 114; approves revision of 
the tariff, 114; vetoes River 
and Harbor Bill, 117, 127; 
hopes for renomination, 126; 
reasons for failure of his candi- 
dacy, 126, 127; and the Pana^ 
ma Canal, 144. 

Australian ballot, 248. 

Ballinger, Richard A., 828, 329. 

Ballot reform, 248, 249. 

Bayard, Thomas F., 134. 

Belknap, William W., 62. 

BeUamy, Edward. 167, 168, 188. 

Benton, Thomas H., 21. 

Bimetallism, 226; plea for in- 
ternational, 227, 234. 

BUck Belt, the, 202, 203. 

Blaine, James G., improper 
official conduct of, 62, 81; the 
Mulligan letters, 82; and the 
proposal to extend pardon to 
Jefferson Davis, 83; candi- 
date for Presidential nominar 
tion (1880), 98; his personal 
following large, 102; Secre- 
tary of State under Garfield, 
102, 103, 106; plans for Pan- 
American Congress, 106; his 
large following among Irish, 



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INDEX 



124, ISS; nominated for Presi- 
dent (1884), 127. 128; and the 
Mugwumps, ISO; caricatures 
of, 182; defeated, 133; replies 
to Cleveland's message on 
tariff reduction (1887), 169; 
refuses to be Presidential can- 
didate again, 169; Secretary 
of State under Harrison, 171, 
172; urges reciprocity, 175; 
exchanges views with Glad- 
stone on protective tariff, 189; 
in the seal fisheries contro- 
versy, 212; resigns Secretary- 
ship, 213; death, 214. 

Blair, Francis P., Jr., 31. 

Bknd, Richard P., 88, 89, 173, 
217. 

Bland- Allison Bill, 181, 217, 218. 

"Bloody shirt," the, 88. 100, 
201. 

Bonaparte, Charles J., 320. 

"Boss," the, 245, 246; power of, 
247, 248. 

Boxer outbreak in China, 281. 

Brady, Thomas J., 104, 105. 

Bristow, Benjamin, 81. 

Brown, B. Gratz, 56. 

Biyan, William Jennings, nom- 
mated for President, 237; 
wages vigorous campaign,288; 
defeated, 240; colonel in 
Spanish War, 266; renomi- 
nated for President, 279; de- 
nounces imperialism, 279; 
again defeated, 280; a lay 
preacher on political subjects, 
805; nominated for Presi- 
dency third time, 825; made 
Secretary of State by Wilson, 
888. 

Bryce, James, his American 
Commonwealth, 188, 189, 246; 
influence of, 247; ambassador 
from Great Britain, 818. 

Buckner, Simon B., 288. 

Burchard, Rev. Samuel D., 188. 

Bureau of Corporations, valua- 
ble reports of, 811, 812. 

Butler, Benjamin F., advocates 



the Greenback movement, 30, 
66; aims at Governorship of 
Massachusetts, 61; his rela- 
tion to the "salary grab," 62; 
Anti-Monopoly candidate for 
Presidency, 181, 182. 

Canadian reciprocity, 332. 

Cannon, Joseph G., defeated 
for Congress, 185; Speaker of 
the House, 804, 805; a stand- 
pat protectionist, 827; ruling 
as Speaker defeated, 329; re- 
turned to Congress, 842. 

Carlisle, John G., 188, 189. 

Carnegie, Andrew, 297. 

"Carpet-baggers," 43, 45, 49, 
194. 

Centennial Exposition, at Phil- 
adelphia, 78. 

Cervera, Admiral, 267, 268, 271, 
272. 

Chase, Salmon P., wishes to be 
President, 3, 4, 81, 56; urges 
creation of bonded debt to 
provide for war expenses, 5; 
inaugurates a system of na- 
tional banks, 27. 

Chile, threatened war with, 212, 
218. 

Chinese, coolies imported into 
California, 25; and Irish, 94; 
harried, 122. 

Chinese Exclusion Bill, 122, 127. 

Choate, Joseph H., 818. 

Christian Science, rise of, 190. 

Churchill, Winston, writes Con- 
iston, 810, 811. 

Cities, growth of, 14; in the 
New South, 205; government 
of, 246. 

Civil Rights Bill, 196, 197. 

Civil Service Act, 118, 117. 

Civil Service reform, 86, 110; 
growth of, 112, 118, 114; 
further extended by Cleve- 
land, 184, 285; and by Taft, 
881. 

Civil War, the, influence of its 
military successes, 1; benefits 



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111 



of the four years of, 18; new 
type brought into politics by, 
78; veterans of, 136. 

Clark, Champ, 829, 880, 886. 

Clayton Anti-trust Bill, 889. 

Clayton-Bulwer treaty, 184, 
144; inadequate, 286. 

Cleveland, Grover, Mayor of 
Buffalo and Governor of New 
York, 180; favored by the In- 
dependents, 180, 181; nomi- 
nated for Presidency, 181; his 
character attacked, 182; elect- 
ed and inaugurated, 188; his 
Cabinet, 188; Lowell's tribute 
to, 184; meets new problems, 
185; vetoes pension bills, 187; 
troubled by divided adminis- 
tration, 188, 189, 140; signs 
"omnibus" bill for new 
States, 152; his emphasis on 
tariff reduction, 169; renomi- 
nated, 170; defeated by Harri- 
son, 171; again nominated for 
Presidency, 214, 215; and 
elected, 215; opposes free 
silver and the silver basis, 219, 
229, 280; loses influence with 
Western Democrats, 220; re- 
fuses to sign Wilson Bill, 221; 
sends federal troops to Chi- 
cago, 221, 222; splits Demo- 
cratic party, 228; in Vene- 
zuela bK>undary dispute, 280, 
281; abandoned by his party, 
285; dies in Princeton, 286; 
tries to maintain neutrality 
in Cuban revolt, 261, 262. 

Cobden Club, and British gold, 
189. 

Coin's Financial School, 229. 

Colfax, Schuyler, Vice-President 
with Grant, 87, 57, 61. 

Colorado, Territory, 20; be- 
comes a State, 78, 74, 149. 

Commissioner of Labor, 122. 

Conkling, Roscoe, 81, 87; disci- 
plined by Hayes, 98; fights for 
Grant, 99; resigns from Sen- 
ate, 108. 



Conservation movement, 820, 
828. 

Consumers' League, the, 250. 

Cooke, Jay, his connection with 
panic of 1878, 62, 68, 64. 

Cornell, Alonzo B., 98, 108. 

Cortelyou, George B., 802, 806. 

Cotton, the staple crop of the 
Old South, 149; hundredth 
anniversary of first export 
celebrated, 208; overproduc- 
tion, 204. 

Cowboys, develop a folk-song 
literature, 150. 

Coxey, Jacob S., 222. 

Credit Mobilier, scandal of, 61. 

Cripple Creek, great miners' 
strike at, 801. 

Crisp, Charles F., 186, 220. 

Cuba, insurrections in, 258; re- 
volutionary government in 
New York, 260; number of 
Spanish troops in, 260; fili- 
bustering parties, 261; Con- 
gress favors recognition of 
belligerency, 262; autonomy 
proposed, 268; Congress rec- 
ognizes independence of, 264; 
blockaded, 267, 268; freed 
from Spain, 278; sanitary im- 
provement in, 282; adopts a 
constitution, 282; makes reci- 
procity treaty with United 
States, 288. 

Cullom, Shelby M., 158, 221. 

Cummins, Gov. Albert B., 808; 
leader of Insurgent Republi- 
cans, 829. 

Curtis, George William, leader 
in civil-service reform, 112, 
128; a Mugwump, 129. 

Custer, Gen. George A., 86. 

Czar of Russia, calls conference 
on disarmament, 288. 

Dakota Territory, 21 ; made into 

two States, 152. 
Darwin, Charles, his influence 

on religious thought, 190. 
Davenport, Homer C, 252. 



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INDEX 



Davis, Judge David, 109. 

Davis, Henry G., S06. 

Davis, Jefferson, 88, 106. 

Dawes Act, the, awarding lands 
to Indians in severalty, 142, 
151, 810. 

Dav, WiUiam R., 258, 278. 

Debs, Eugene V., 222; Social 
Democratic candidate for 
President, 801, 888. 

De Lesseps, Ferdinand M., 144. 

DeLome, Sefior, criticizes Mc- 
Kinley, 268, 264. 

Democratic party, the, differ- 
ences in, during the Civil War, 
2, 8; Chicago convention 
(1864), 4, 5; nominates Sey- 
mour (1868), 81; gains control 
of readmitted Southern States, 
52, 54; nominates Greeley 
(1872), 57; weakened by its 
past, 79; nominates Tilden 
(1876), 80, 81; gets plurality 
of popular vote, 88; gains con- 
trol of the House (1874), 87; 
nominates Hancock (1880), 
99; gains the Senate (1878), 
108; loses the House (1880), 
108; regains it (1882), 117; 
electe develand (1884), 180- 
SS; on tariff revision, 138, 
220, 221; resists demands for 
statehood, 152; casts plural- 
ity of votes in 1888, but loses 
all branches of government, 
171 ; regains the House (1890), 
186; rejects Cleveland and 
wins the Senate (1892), 215; 
split by free silver and tariff 
questions, 228, 229, 282; loses 
both Senate and House (1894), 
229; nominates Bryan on 
free-silver platform (1896), 
287; denounces imperialism 
and renominates Bryan (1900), 
279; nominates Farker on 
conservative platform (1904), 
805, 806; nominates Bryan for 
third time (1908), 825; re- 
gains the House (1910), 820, 



880; elecU Wilson (1012), 

887, 888. 
Department of Agriculture, 142, 

157. 
Department of Commerce and 

Labor, 122, 802. 
Dependent Pension Act, 174. 
Dewey, Commodore George, 

265; destroys Spanish fleet at 

Manila, 267. 
Diaz, Porfirio, expelled from 

Mexico, 881. 
Dingley, Nelson, 258, 254. 
Dingley Bill, the, 254, 255, 808, 

804. 
Dollar diplomacy, 881. 
Donnelly, Ignatius, 209. 
Dorsey, Senator Stephen W., 

in star route frauds, 104, 127. 
Du Bois, W. £. B., 202. 

Eads, James B., 206. 

Eaton, Dorman B., 118. 

Edmunds, George F., 99, 128. 

Education Board, General, in- 
corporated by Congress, 201. 

Educational Board, Southern, 
organized, 201. 

Egan, PatridE, Minister to Chile, 
212, 218. 

Eight-hour day, 185, 186. 

Electoral Commission, the, 84. 

Eliot, Charles W., 60. 

EUdns, Stephen B., 127, 128. 

English, William H., 09. 

Equitable Life Insurance Com- 
pany, investigation of, 812. 

Factories, American, growth of, 
14, 15, 16; influenced by in- 
ventions, 95. 

Fairbanks, Charles W., Vice- 
President with Roosevelt, 805. 

Farmers, condition of, in North 
and South, contrasted, 178; 
discontent keenest in West, 
179; experimental, 180; de- 
mand cheaper money, 181; 
desire cooperation, 182; be- 
lieve diarges against both po- 



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litical parties, 185; value of 
vote of dissatisfied, 193. 

Farmers' Alliance, the, in South 
and West, 188, 184, 192, 193; 
undermines Republicans in 
West, 185; attempts union 
with Knights of Labor, 186, 
187; splits white vote in the 
South, 192, 198, 196; used to 
express Southern dbcontent, 
195; holds national conven- 
tion at St. Louis, 208; merged 
in People's Party, 209. 

Farms, American, size of, 40, 41, 
95; increase in number, 149, 
150; decrease in size of South- 
em, 194; number of, 194. 

Farragut, Admiral David 6., 5. 

Fava, Baron, Italian Minister 
at Washington, 213. 

Federal Reserve Act, 339. 

Federal Trade Commission, 889. 

Field, James G., 211. 

Fisk, James, Jr., 60. 

Folger, Charles J., 127. 

Folk, Joseph W., 311. 

Force Bill, the, 200, 201. 

Ford, Paid Leicester, The Hon- 
orable Peter Stirling, 132. 

Ford, Worthington C, 254. 

Forestry service, 328. 

Free lands, disappearance of, 
marks new period, 154, 155. 

Free passes, on interstate rail- 
roads, forbidden by law, 313. 

Free silver, demanded by Popu- 
lisU, 209, 210; agitation for, 
226, 228; textbook of, 229; 
fight for, in Republican con- 
vention ri896), 234, 235; de- 
manded by Democratic con- 
vention, 236. 

Freedmen's Bureau, 34, 201; 
work of, 42, 43, 45. 

Frelinghuysen, Frederick T., 
106, 109, 134. 

Fremont, John C, candidate 
for the Presidency, 3, 4; ar- 
rested in France, 60; charged 
with land frauds, 60, 61. 



"Frenzied finance,*' 810. 
Prick, Henry C, 299. 
"Full dinner pail, the," 280. 

Gage, lynutn J., 258. 

Gafteld, James A., nominated 
for Presidency (1880), 99; 
forged letters against, 101, 
104, 105, 122; sketch of, 101; 
his Cabinet, 102; trouble with 
Conkling, 103; death of, 105, 
108; and the Panama Canal* 
144. 

Garland, Augustus H., 188. 

George, Henry, 188. 

Georgia, difficulties with Con- 
gress, 47, 48. 

Gilman, Daniel Coit, 60. 

Gladden, Washington, 310. 

Gkdstone, William £., 189. 

Grodkin, Edwin L., editor of the 
Nation, 59, 67, 85; and dvil 
service reform, 112. 

Goethals, Major George W., 
engineer of Canal Zone, 317. 

Gold, at a premium, 27 ; hoarded, 
218; great increase in pro- 
duction of, 241. 

Gold dollar, ratio to silver, 0; 
value in greenbacks, 10, 29. 

Gorgas, Col. William C, chief 
sanitary officer of Canal Zone, 
317. 

Gould, Jay, 60, 294. 

Grand Army of the Republic, 
used for procuring pensions, 
136, 137. 

Grandfather clause, the, 200. 

Granger Laws, the, 68, 70, 157; 
constitutionality of, 71, 72. 

Granger movement, the, 67, 68, 
183; relations with the panic 
of 1873, 72; doctrine estate 
lished by, 157. 

Grant, Ulysses S., the coveted 
cancUdate of both parties, 36; 
general rejoicing in his elec- 
tion, 37; inaugurated in 1869, 
46; his first term ends un- 
satisfactorily, 55; success with 



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INDEX 



the Alabama daims, 55, 56; 
renominated, 57; various un- 
savory episodes of his years 
as President, 60, 62; vetoes 
the Inflation Bill 66; rejec- 
tion ci (1872), 75; receives 
scanty support for a third 
term, 81, 98, 99; and dvil 
service reform, 112.^ 

Greeley, Horace, nominated for 
President by Liberal Repub- 
licans, 56; a quaint political 
figure, 57; quoted, 89. 

Greenback movement, the, ad- 
vocates of, 80, 65, 66; Eastern 
opinion of, contrasted with 
Western, 68; and silver infla- 
tion, 88, 180, 181. 

Greenbacks, 9; value of, 10; 
depreciation of, 27; with- 
drawal of, 28; further retire- 
ment of, forbidden by law, 
80; rising in value, 65; issued 
during panic of 1878, 66. 

Guam, ceded to United States, 
278. 

Guiteau, William B., 105. 

Hadley, Pres. Arthur T., 810. 

Hague, the, court of arbitration 
at, 288; Venezuelan claims 
referred to, 284; second con- 
ference, 818. 

Hancock, Gen. ITinfield Scott, 
80. 99, 100, 101. 

Hanna, Marcus Alonzo, raises 
fundis for Republicans, 102, 
288, 238, 289; appointed Sen- 
ator, 252; helps settle coal 
strike, 800, 802; grows in pop- 
ularity, 802, 808; death, 804. 

Harmon, Gov. Judson, 886. 

Harriman, Edward H., 294, 295. 

Harrison, Benjamin, nominated 
for Presidency, 169; elected 
as a minority President, 171, 
211; friction with Chile. 212, 
218; renominated, 214; de- 
feated, 215, 216. 

Hawaiian Islands, 278, 274, 278. 



Hay, John, on MclSnley, 251; 
Secretary of State, 278, 282; 
career of, 281. 

Hay-Paunoefote Treaty, for 
Isthmian canal, 286, 287. 

Hayes, Rutherford B., receives 
nomination for President, 82; 
difficulties of his election, 83, 
84; alienates many Republi- 
cans by his attitude toward 
the South, 85; his troubles 
with Democratic congress, 87 ; 
removes Chester A. Arthur 
from office, 87, 98, 108; finan- 
cial policy of his administra- 
tion, 89, 90; a new p«iod of 
growth begun during his term 
of office, 90, 92; end of his 
term, 97, 102; and the Pan- 
ama Canal, 144; becomes 
head of Skter fund, 201. 

Hearst, William R., 805. 812. 

Hendricks, Thomas A., candi- 
date for Vice-President, 80, 
81, 181. 

Hepburn Railway Bill, the, 815. 

Hill, Gov. David B., 214, 215, 
248. 

Hill, James J., 295, 296. 

Hobart, Garrett P., Vice-Presi- 
dent with McKinley, 284; 
dies in office, 280. 

Homestead Act, the, 21, 155. 

Hopkins, Johns. 60. 

Howells, William Dean, 188. 

Huerta, Victoriano, President 
of Mexico, 840. 

Hughes, Charles E., exposes 
wrongdoing of insurance com- 
panies, 812; mentioned for 
Presidency, 824. 

Hull House, 251. 

Humphreys, Benjamin G., 46. 

Husband]^, Patrons of, 198. 

Idaho, becomes a Territory, 21; 

admitted to the Union, 152. 
Immigration movement, ^thep 

influences of, 128. 124. 
Income tax, 221, 827, 888. 



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vu 



Indians, removal of, 22, 25; out- 
breaks of, 25, 86; Dawes Bill, 
142, 151, 319. 

Industrial Commission, 298. 

Industrial consolidation, evolves 
new type of trust, 297, 299. 

Industrial revival, after 1897, 
293, 294. 

Industrial revolution, effects of, 
95. 

Inflation Bill, the, 66. 

Ingersoll, Robert G., quoted, 92. 

Initiative and referendum, 249, 
250. 

Interstate Commerce Act, the, 
142, 158, 159; commission cre- 
ated, 159, 160; influence of 
rebate system on, 165; had 
little inunediate effect, 180; 
an imperfect statute. 314; 
strengthened by Congress, 
315, 330. 

Irons, Martin, 135. 

Irrigation, 142, 291. 

Italians, lynched in New Or- 
leans, 213. 

Jackson, Andrew, 8, 111. 

James, Thomas L., 102, 103, 104. 

Japan, at war with Russia, 317. 

Johnson, Andrew, candidate for 
the Vice-Presidency, 4; be- 
comes President upon death 
of Lincoln, 32; opposition of 
Congress to, 33, 34; impeached 
by House, 35; acquitted, 36; 
vetoes arbitrary acts of Con- 
gress, 48. 

Johnson, Gov. Hiram, 337. 

Johnson, Reverdy, 55. 

Journalism, expansion of, 162; 
reorganized in the later nine- 
ties, 311. 

Kansas City, important as meet- 
ing place of railways, 150, 151. 
Kearney, Dennis, 94, 124. 
Keifer, J. Warren, 108. 
Kelly, John, 131. 
Kerr, Michael C, 108. 



Kipling, Rudyard, The White 
Man's Burden, 274. 

Knickerbocker Trust Company, 
suspension of, 322. 

Knights of Labor, secret society 
in the East, 94; meet with 
disfavor, 121; demands of, 
122; fight the Gould railways, 
135; success of, 183; union 
with Farmers* Alliance, 186, 
187; in Pullman strike, 222. 

Knox, Philander C, 296, 320, 
331. 

Ku-kIux Klan, the, 52. 

Labor, tariff supposed to pro- 
tect, 119; Commissioner of, 
122; Bureau of, 135; danger 
from European pauper, 139; 
becomes better united, 299. 
See also Knights of Labor, 
Strikes. 

La FoUette, Robert M., de- 
feated for Congress, 185; 
works out a system of prima- 
ries, 249; in the Senate debate 
on railroads, 315; leader of 
Insurgent Ilepublicans, 329; 
possible Presidential candi- 
date, 330, 335, 336. 

Lamar, L. Q. C, 133. 

Land grants, to railroads, 22, 
24, 148, 156; dbcontinued, 
143. 

Land laws, difficulty in enforc- 
ing, 155, 156. 

Lawson, Thomas W., 310. 

Lawton, Gen. Henry W., 271. 

Liberal Republicans, secede in 
1872 and nominate Greeley 
and Brown, 56; platform of, 
56, 57; in Garfield's adminis- 
tration, 102; favor civil ser- 
vice reform and tariff revision, 
112, 116, 126; put Edmunds 
forward for Presidential can- 
didate ^1884), 128. 

Lincoln, Abraham, his view in 
regard to the spoils system, 
2; aims to develop a Union 



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INDEX 



sentiment, 2, S; aided by ex- 
cesses of Democrats, 4, 5; his 
use of offices. 111, 112. 

literature in United States, 187, 
188; periodical, 189, 190; reli- 
gious, 190. 

Lloyd, Henry D.. 116, 166, 167. 

Lodge, Henry Cabot, as an 
independent, 128; supports 
Blaine, ISO; approves the 
Force Bill, 200, 201. 

Logan, John A., 128. 

Lorimer, William, SSO. 

Lowell, James Russell, quoted, 
54, 59; on Cleveland 134. 

McClellan, Gen. George B., 8, 5. 

McCluie, S. S., 811. 

McCuUoch, Hugh, 28, 29. 

McEnery, Samuel D., 254. 

McKinley, William, his Tariff 
Bill, 172, 178, 174, 175; ac- 
cepts principle of reciprocity, 
175; defeated for Congress, 
185; Governor of Ohio, 214; 
"advance agent of prosper- 
ity," 232, 241; a tactful Con- 
gressman, 233; nominated for 
President (1896), 234; makes 
no personal campaign, 239; 
elected, 240; his election a 
victory for sound money, 241 ; 
calls special session of Con- 
gress for new tariff, 242; in- 
augurated as President, 251; 
his theory of the office, 252; 
action in the Cuban matter, 
262, 264; reelected President, 
280; murdered, 282. 

McKmley Bill, the, 178, 174, 
215, 216; sugar clause a notar 
ble feature of, 175; opposition 
to, 184. 

MacVeagh, Wayne, 102. 

Machinery, influence of, 15, 16, 
95. 

Mahone, William, 109. 

Maine, the, blown up in Havana 
harbor, 264. 

Marshall, Thomas R., nomi- 



nated by Democrats for Vice- 
Presidency, 337. 

Merritt, Gen. Wesley, 267. 

Mexico, revolutions in, 331, 840. 

Miles, Gen. Nelson A., on the 
results of drought, 182; com- 
mander of army in Spanish 
War, 269; invades Porto Rico, 
272. 

Mills, Roger Q., tariff leader, 
139. 

Mills Bill, the, 189, 140, 169, 170. 

Mining camps, rapid develop- 
ment of, 20, 21, 22. 

Mississippi, the process of re- 
construction in, 46, 47; dis- 
qualifies negroes, 198, 199. 

Mississippi River Commission, 
206. 

Mitchell, John, 300. 

"Molly Maguires," 94, 121. 

Monroe Doctrine, in Venezuela 
case, 230, 231, 284. 

Montana, created a Territory, 
21; becomes a State, 152. 

Morgan, J. Pierpont, 295, 321. 

Mormons, 20; make a prosper- 
ous Territory in Utah, 154. 

Morton, Levi P., Vice-President 
with Harrison, 169. 

Morton, Oliver P., war Gover- 
nor of Indiana, 81. 

Muck-raking, 315, 316. 

Mugwumps, 129, 130. 

MuUigan letters, the, 82. 

Miux£ison letter, the, 170, 171. 

Nast, Thomas, cartoonist, 50, 

57, 86, 132. 
National Labor Union, 208. 
National Planters* Association, 

203. 
Navy, of the United States, at 

outbreak of Spanish War, 

265; sent round the world 

without mishap, 319. 
Negro, the, would not work at 

dose of war, 40; a social and 

economic problem, 41, 42; 

made a voter by Congress, 43, 



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INDEX 



IX 



45, 48; elimination of con- 
trol by, 51, 52, 54; a factor in 
Republican national con- 
vention, 98, 99; becomes a 
fann owner, 194; suppressed 
outside the law, 196; bad 
Qualities of, 198; practically 
disfranchised in South, 199, 
200; advances in literacy, 202; 
distribution of, 202, 203; 
Roosevelt's attitude toward, 
289, 290. 

Newlands Reclamation Act, 291 . 

New Mexico, 152, 154; becomes 
a SUte, 880. 

New South, the, has but one 
political party of consequence, 
192; dissatisfied farmer vote 
in, 193; disintegration of plan- 
tations, 194; oppressed by 
its agricultural system, 195; 
practically disfranchises ne- 
groes, 196-200; education in, 
201, 202; border traits of, 202; 
a modem industrial commu- 
nity, 208; development of 
cities, 205. 

Nez Perc^, outbreak of, 86. 

Nicaragua Canal, 184, 286. 

North, S. N. D.. and the Ding- 
ley BUI, 254. 

North Dakota, admitted to 
Union, 152. 

Northern Pacific Railroad, 148, 
295; and panic of 1878, 68, 65; 
finished under direction of 
Henry Villard, 144. 

Northern Securities Company, 
296,299. 

Oklahoma, Indians colonized in, 
151; opened to white settlers, 
151 ; becomes a State, 819. 

Olney, Richard, 230, 281. 

Oregon, the, spectacular voyage 
of, 274, 286. 

Overproduction, menace of, 96. 

Palmer, John M., 288. 
Panama, Republic of, 288. 



Panama Canal, begun by De 
Lesseps, 144, 286; determined 
on by Congress and Presi- 
dent Roosevelt, 287, 288; 
Panama grants concession, 
289; first boats pass through, 
289; dispute over sea-level 
and lock systems, 816-17. 

Pan-American Conference at 
Rio de Janeiro, 818. 

Pan-American Congress, 106, 
109. 

Panic of 1857, the, 6, 7, 9, 11, 12. 

Panic of 1873, the, 62-74; Jay 
Cooke's connection with, 62i- 
65; real causes of, 64, 65; re- 
duces revenues, 115; often 
attributed to low rates of 
Wilson BiU, 254. 

Parker, Judge Alton B., Demo- 
cratic candidate for President 
(1904), 805; defeated. 806. 

Payne, Sereno E., 826. 

Peabodjr, George, creates fund 
to relieve negro illiteracy, 201. 

Pendleton, George H., 80, 81. 

Penrose, Boies, 253, 842. 

Pension Bureau, 137; import- 
ant through alliance with the 
soldiers, 172. 

Pensions, influence of soldier 
vote on, 136; for service only, 
187; amounts spent on, 187, 
188; system criticized by 
Southern farmers, 178; used 
millions of the national sur- 
plus, 216. 

People's Party, 184; to right all 
wrongs of the plain people, 
186, 187; becomes a finished 
organization, 208, 209; de- 
mands of, 210. 

Petroleum trust, 164, 165. 

Philippine Islands, ceded to 
United States, 273; revolt in, 
under Aguinaldo, 278. 

Pierpont, Francis A., 47. 

Pike, James S., author of The 
ProgiraU State, 51. 

Pinchot, Gifford, 828. 



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INDEX 



Pious Fund dispute, the, 288. 

Piatt, Thomas C, resigns from 
Senate, 103; claims promise 
of Secretaryship under Har- 
rison, 172; offended by Har^ 
rison, 218; Senator from New 
York, 258; opposes nomina- 
tion of Roosevelt for governor, 
277; aids Roosevelt boom for 
Vice-Presidency, 280. 

Polygamy, in Utah, 154. 

Populism, origin of, 208. 

Populists, denuinds of, 210; 
carry four States in Presiden- 
tial election (1892), 216; cari- 
catures of, 223; fuse with 
Democrats, 237, 238; favor 
direct legisUtion, 249, 250. 

Porto Bico, invaded by United 
States troops, 272; ceded to 
United SUtes, 273; Territori- 
al government provided, 278. 

Post-office, the, corruption in, 
103, 104, 105, 113, 114. 

Potter, Bishop Henry C, 246. 

Powderly, Terence V., 121, 122, 
135. 

Practical politics, 110. 

Preemption Law, the, 21, 155, 
156. 

Presidential Succession Act, 105. 

Primaries, direct, 249, 335. 

Progressive Republicans, re- 
volt, 329; organize a League, 
330; principles of, 333; op- 
pose renomination of Taft, 
334; urge Roosevelt to run, 
335; organize Progressive 
Party, 336; nominate Roose- 
velt and Johnson, 337; popu- 
lar vote of, 338; influence 
negligible in 1914, 342. 

Protection, in Republican plat- 
form (1888), 170, 171; ear- 
nestly discussed by both 
parties, 170; enlarged by 
McKinley Bill, 174, 176; of 
unborn industries, 1*25; 
strongest in East, 177; ram- 
pant spirit for, in 1897, 254. 



Pure food movement, 313, 814, 
,328. 

Quay, Matthew S., chairman 
of Harrison campaign com- 
mittee, 170, 171, 174; of- 
fended by Harrison, 213; 
completes partnership of man- 
ufacturers and voters, 232; 
selects Penrose for Senator, 
253. 

Railroads, development of, 10, 
12, 68, 69, 92, 93; importonce 
of, 16, 69; land grants to, 22, 
24, 148; continental, 22, 25, 26, 
143, 144, 145; hostiUty of the 
Grange, 68, 70; rate laws, 71, 
72; agree upon standard time, 
148; encourage immigration 
and colonization, 148, 149; 
regarded as quasi-public, 157, 
159; national control of, 158; 
bargaining in rates, 165; and 
the Sherman Anti-Trust Law, 
173; promote new settle- 
ments, 179; in the South after 
the Civil War, 204; controlled 
by a few men, 294. 

Rainfall, importance of, 150, 
179, 180, 182, 186. 

Randall, Samuel J., 108, 188, 

Rebates, railroad, forbidden by 
Elkins Law, 296. 

Reciprocity, favorite scheme of 
Blaine, 175. 

Reclamation of arid lands of 
the Southwest, 290, 291, 320. 

Reconstruction, an inappropri- 
ate name for what took place, 
89; no constitutional theory 
adequate to meet problems of, 
44; must be judged by results, 
44, 45; completion of, in form- 
al sense, 46; not far advanced 
by 1870, 49; dominant type of 
leaders, 78; political super- 
seded by constitutional, 85. 

Reconstruction Acts of 1867, 
the, 43, 45, 47. 



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E«)EX 



XI 



Reconstruction Governments, 
evils of, 60, 61, 61. 

Reed, Thomas B., 172. 229. 
240. 

Referendum and initiative. 249, 
250, 33S, 334. 

Regan, John H., 193. 

Reid, Whitdaw, 56, ISO. 

Republican party, the, during 
the Civil War, 1, 2; called it- 
self Union, 4, 32; paid for its 
disguise, 32; in the South 
after 1876, 54; new men in 
control. 78, 79; regains con- 
trol of the House (1880). 108; 
but loses it again (1882), 117; 
dissensions in, 128; defeated 
in 1884, 183; elects President 
and majority in both houses 
in 1888, 171; suffers a land- 
slide (1890), 185, 186; regains 
control of Senate and House, 
(1894), 229; platform in 1896. 
234; dominates every branch 
of National Government for 
fourteen years, 244; the party 
of organized business, 252; 
approves the Spanish War, 
279; elects Taft President 
(1908), 324, 325; revises tariff. 

326, 327; dissatisfaction in, 

327, 328; loses the House 
(1910), 329; renominates Taft 
(1912). 336. 

Revels, Hiram R., negro Sena- 
tor from Mississippi, 47. 

River and Harbor Bill, 117. 

Rockefeller, John D., gains 
chief control of petroleum 
tra£Sc, 165, 166; aids cause of 
education in South, 201; 
methods of, 310, 321. 

Roosevelt, Theodore, 128; steps 
out of Blaine campaign, ISO; 
Assistant Secretary of the 
Navy, 265, 277; raises a regi- 
ment for Spanish War, 266; in 
Cuba, 270; early public career 
of, 276; Governor of New 
York, 277; a reformer of a 



new type, 277; Vice-President 
with McKinley, 280; succeeds 
to Presidency, 282; and the 
Hague Court, 283, 284; ac- 
tivity in securing Panama 
Canal, 286, 288; questionable 
course toward Colombia, 286, 
288; attitude toward negroes. 
289, 290; widely popular, 291; 
disliked by professional poli- 
ticians, 291; dissolves North- 
em Securities Company, 296. 
299; settles coal strike. 300; 
alienates party leaders, 302; 
wants nomination on his own 
account, 303; tries to modify 
Dingley Tariff, 304; nomi- 
nated for President. 305; and 
elected. 306; declares he will 
not accept another nomina- 
tion. 307; goes outside of 
United States territory. 316- 
17; receives the Nobel prize. 
317; promotes second Hague 
Conference, 318; sends navy 
round the world, 319; holds 
conference of state governors 
at White House, 320; called 
"Theodore the Meddler," 
322; his policies those of the 
people, 323; secures nomina^ 
tion of Taft for Presidency, 
324, 325; goes to Africa, 329; 
formulates New Nationalism. 
333; defeated in Republican 
convention, 336; nominated by 
Progressives, 337. 

Root, Elihu, becomes Secretary 
of War, 274, 281; Secretary 
of State, 318; mentioned for 
Presidency, 324; presides over 
Chicago convention, 336. 

Rough Riders, the, 266, 270, 277. 

"Rum, Romanism, and rebel- 
lion,** 133. 

Rusk, Jeremiah M., 136, 167. 

Russia, at war with Japan, 317. 

Sackville-West, Sir Lionel, 170. 
Salary grab, in Congress, 62. 



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INDEX 



Salisbuiy, Lord, in VeneKuela 
case, 290, 291. 

Sampson, Capt. William T., in 
blockade of Cuba, 265, 268, 
269, 270, 272. 

Schenck, Robert C, 55, 61. 

Schley, Commodore Winfield 
Scott, in blockade of Cuba, 
265, 268, 269, 272. 

Schurs, CarU leader of the lib- 
eral Republicans, 56; intro- 
duces merit system, 86; reor- 
ganizes the Indian service, 86, 
87; supports civil service re- 
form, 112, 118; an anti- 
imperialist, 278. 

Seal fisheries, 212. 

SewaU, Arthur, 297. 

Seymour, Horatio, 4; nominated 
for Presidency, 91; loyalty 
above question, 79. 

Shafter, Gen. William R., 269, 
270. 

Sherman, James S., nominated 
for Vice-Presidency, 925, 996. 

Sherman, John, Senator from 
Ohio, 60; Secretary of the 
Treasury, 89; proposed for the 
Presidency, 98, 99, 128; Sec- 
retory of SUte, 259. 

Sherman, Gen. William T., 5. 

Sherman Anti-Trust Law, the, 
enacted, 172, 179, 299; en- 
forced under Roosevelt, 920, 
921. 

Sherman Silver Purchase Bill, 
174, 218, 219, 220. 

Silver, fall in value of, 88, 228; 
free coinage demanded, 181, 
182; mines, output of, 181; 
coinage of, 217; demonetiza- 
tion of, called a crime, 225. 

Sinclair, Upton, 811. 

Slater, John F., creates fund for 
education of negro, 201. 

Social Democratic party, 901. 

Socialist Labor party, 801, 938. 

South, the, before the war, 11, 
12; price of its attempt at in- 
dependence, 99; stubbornness 



of, 40; decrease in size of 
farms, 40, 41; ^vemment of, 
by army, 42; divided into five 
military districts, 49; new 
constitutions of its States, 46; 
readmission to Union, 47, 49; 
repudiation of debts, 51; 
normal politics Democratic, 
52, 54, 79. See also New 
South. 

South Dakota, admitted to 
Union, 152; first State to 
adopt initiative and refers 
endum, 250. 

Southern Pacific Railroad, 145, 
148; passes into control of 
Union Pacific, 294, 295; 
merger dissolved, 990. 

Spain, sends Gen. Weyler to 
Cuba, 260; embittered against 
United States by filibustering 
parties, 261; chan^ of Min- 
istry in, 262; declmes media- 
tion, but recfdls Gen. Weyler, 
269; establishes a sort of au- 
tonomy for Cuba, 269; war 
with United States begun, 
264; loses fleet at Manila, 
267; and another at Santiago, 
272; army at Santiago sur- 
renders, 272; loses Cuba, 
Porto Rico, the Philippine 
Islands, and Guam, 279. 

Squatters, 21, 155. 

Stalwarts, the, support Conk- 
lin^ against Garfield, 109; 
claimed as friends by Guiteau, 
105; relations widi Arthur, 
109, 126. 

Standard Oil Company, the, 
166, 167; suit against, brought 
by Ohio, 168; history of, 910; 
charges of extorting rebates, 
911, 312; dissolved, 990, 991. 

Standard time, adopted by 
American railroads, 148. 

SUnford, Leland, 25. 

Stanton, Edwin M., 9, 95. 

Star route frauds, 109, 104, 105, 
113. 



Digitized 



byGoogk 



INDEX 



xui 



Steel industry, the, 16, 297, 298. 

StefiPens, Lincoln, 810. 

Stevens, Thaddeus, 80, 84. 

Stevenson, Adlai E., Vice-Pres- 
ident with Cleveland, 215; 
nominated with Bryan, 279. 

Strathcona, Lord, interested in 
Canadian railways, 148. 

Strikes, 121; Pullman, 222; at 
Cripple Creek, 222, 301; at 
Homestead, 299; in Pennsyl- 
vania coal fields, 299, 800. 

Sunmer, Charles, 84, 55. 

Surplus, embarrassing, 98, 178; 
an incentive to extravagance, 
116, 186, 188; easily relieved, 
174; nearly exhausted, 216. 

Taft, William H., decision as 
Circuit Judge against an in- 
dustrial combination, 299; re- 
called from Philippines to be 
Secretary of War, 817; 
Roosevelt's choice for Presi- 
dency, 824; nominated and 
elected (1908), 825; urges 
tariff revision, 826, 827; alien- 
ates some of the Republican 
leaders, 827, 828; in the Pin- 
chot-Ballinger dispute, 828, 
829; pushes anti-trust suits, 
880, 831; extends civil ser- 
vice, 881; negotiates arbitra- 
tion treaties with Great Bri- 
tain and France, 881, 882; re- 
nominated (1912), 886; badly 
defeated, 838. 

Tanner, James ("Corporal"), 
172. 

Tarbell, Ida M., writes history 
of Standard Oil Company, 
809, 810. 

Tariff, the favorite national tax, 
6, 7; basis of the rate of, 7; at 
the end of the war, 8; differ- 
ent views of, 97; influence of, 
in Presidential campaigns, 
100; revision of, 114, 116, 117; 
as a source of revenue, 114, 
115; attacks upon, 115, 116; 



commission created to investi- 
gate needs of, 117, 118; diffi- 
culties of constructing, 118, 
119, 140; revision demanded, 
169; McKinley Bill, 172-75; 
opposition to the new law, 
184; a factor in political land- 
slide of 1890, 186; McKinley 
Bill in danger, 215; tariff for 
revenue the winning issue in 
1890 and 1892, 220; financial 
interest of manufacturers in, 
238; the Dingley Bill, 258, 
254, 255; the "mother of 
trusts," 808; revised by Re- 
publicans, 826, 827; reduced 
by Pemocrats, 889. 

Taxes, as means of raising 
money, 6, 114, 115; author- 
ized more reluctantly than 
loans, 6; often revised and 
increased, 7; difficulties of 
Congress with, 115. 

Taylor, Hannis, 262. 

Tennessee, readmitted to the 
Union, 45; escapes negro dom- 
ination, 54. 

Tenure-of-Office Act, 84, 85. 

Texas, readmitted to Union, 47; 
thorough change in, after the 
Civil War, 204, 205. 

Thurman, Allen G., 170. 

Tilden, Samuel J., prosecutes 
the Tweed ring, 80; Demo- 
cratic candidate for President 
in 1876, 80, 81; doubtful re- 
sult of the election, 83, 84; 
unwilling to run in 1880, 99. 

Timber Ciuture Laws, 155. 

Tobacco Trust, 830, 881. 

Transportation, a fundamental 
factor, 162; creates new 
standards of living, 162, 163; 
relation to the trusts, 164, 165; 
vital to frontier life, 180. 

Treves, Sir Frederick, praises 
work in Canal Zone, 817. 

Trusts, formation of, 168, 164; 
logical outcome of, 164; in- 
fluence of transportation, 164, 



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165; whiskey and sugar, 166; 
evils of, social or political, 
167; difficulty of regulating, 
168; investigation ordered, 
169; the aim of, 297; Chicago 
conference on, 298; and 
strikes, 299, 300; not all 
"bad," 802; tariff the mother 
of, 80S; the menace of, 809; 
prosecution of, 820, 821. 
Tweed, William M., 50, 60. 

Underwood, Oscar W., 829, 880, 
886. 

Union League, of freedmen, 45. 

Union Paofic Railroad, build- 
ing of, 22, 24, 25; celebration 
of completion, 25; scandals 
of, 61; extended to Denver, 
74; a national project, 142, 
148; extended to the Gulf 
and into Oregon, 145; recon- 
structed by Harrinuin, 294. 

United Mine Workers of Amer- 
ica, 800. 

United States Steel Corpora- 
tion, 297, 298. 

Utah, polygamy in, 154; admit- 
ted to the Union, 240, 290. 

Vallandigham, Clement L., 4. 
Venezuela, boundary dispute 

with Great Britain, 230-82; 

before the Hague Court, 284. 
VUlard, Henry, 144, 145. 
Virginia, readmitted to Union, 

47. 

Waite, Gov. Davis H., 222, 228. 
Wanamaker, John, 172, 253. 
Washington, becomes a State, 

152. 
Washington, Booker T., 202, 

290. 



Watson, Thomas E., 193, 288. 

Watterson, Henry, 56. 

Weaver, James B., Greenback- 
Labor candidate for the Pres- 
idency, 101; leader in the 
People's Party, 209; Presi- 
dential candidate, 211, 216. 

Wells, David A., 116. 

Western Federation of Miners, 
in Cripple Creek strike, 801. 

Weyler, Gen. Valeriano, 260, 
261,263. 

Wheeler, William A., Vice-Presi- 
dent with Hayes, 83. 

Whiskey mng, the, 62, 81. 

Whiskey and Sugar Trusts, 166. 

Wiley, Dr. Harvey, 814, 328. 

Wilson, Henry, Vice-President 
in Grant's second term, 57. 

Wilson, James, 814, 828. 

Wilson, William L., 215; leader 
in tariff revision, 139, 220, 
221; on free silver, 229. 

Wilson, Woodrow, career of, 
836, 337; nominated by Dem- 
ocrats for Presidency, 337; 
elected, 338; delivers message 
to Congress in person, 339; a 
coercive leader, 839; attitude 
toward Mexico, 340; neutral- 
ity in European war, 841, 842. 

Windom, William L., 102, 172. 

Woman suffrage, adopted by 
several SUtes, 250, 334. 

Wood, Gen. Leonard, 270, 282. 

Woodford, Gen. Stewart L., 
Minister to Spain, 262, 268. 

Wright, Carroll D., Commis- 
sioner of Labor, 122. 

Wyoming, made a Territory, 
149; a State, 152, 250. 



Yellow fever, 
Cuba, 282. 



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